2025 (7) TMI 1349 - HC - Customs

Maintainability of appeal in terms of Section 130(1) of Customs Act 1962 - appropriate forum - HELD THAT - In terms of Section 14 of the Act read with Rule 10(2) of the Customs Valuation (Determination of Value of Imported Goods) Rules 2007 - Section 130 of the Customs Act deals with appeal to the High Court. In terms of sub-Section (1) an appeal shall lie to the High Court from every order passed in appeal by the Appellate Tribunal on or after the first day of July 2023 and not being an order relating to among other things to the determination of any question having their relation to the rate of duty of customs or to the value of the goods for the purpose of assessment if the High Court is satisfied that the case involves a substantial question of law. Admittedly the issue raised in this appeal by the revenue concerns the valuation of the goods in question. Therefore there is a clear embargo in entertaining this appeal by this Court as the appeal is not maintainable in terms of Section 130(1) of the Act. For such reason the appeal stands dismissed.

Summary

The Calcutta High Court dismissed the Department's appeal under Section 130 of the Customs Act, 1962, challenging the Customs, Excise and Service Tax Appellate Tribunal's order dated 21.11.2024. The Department contended that the respondent-importer evaded customs duty by not including freight charges in the assessable value under Section 14 read with Rule 10(2) of the Customs Valuation Rules, 2007. However, Section 130(1) bars appeals to the High Court from Tribunal orders concerning "the value of the goods for the purpose of assessment," unless a substantial question of law is involved. Since the appeal related to valuation, the Court held there was a "clear embargo in entertaining this appeal" and dismissed it as "not maintainable." The Court left the substantial questions of law "open" and noted the Department may pursue other remedies available under law.