2025 (7) TMI 1557 - HC - Customs

Maintainability of petition - availability of alternative remedy - jurisdiction to pass impugned order - Principal Commissioner has refused to follow the Advance Ruling Authority s ruling on the alleged ground that the same was based on misrepresented facts - violation of principles of natural justice - HELD THAT - This is not a case where the Petitioner was not issued any show cause notice or that the Petitioner was not heard before the impugned order was made. The argument that some material which was relevant has not been considered can always be raised in appeal and on this ground the usual practice of exhaustion of alternate statutory remedies cannot be deviated from. Sections 129A and 129B of the Customs Act the Appellate Tribunal has been conferred wide and substantial powers to pass orders in appeal as it deems fit confirming modifying or annulling the decision or order appealed against. The Appellate Tribunal is also empowered to refer the case back to the authority that passed the decision or order with directions as the Appellate Tribunal may think fit for a fresh adjudication or decision as the case may be after taking additional evidence if necessary. Thus the statutory remedy provided under the Customs Act is efficacious and no case is made out to circumvent the same. This petition is declined to be entertained - petition dismissed.

Summary

ISSUES:

Whether the impugned order by the Principal Commissioner of Customs is wholly without jurisdiction for refusing to follow the Advance Ruling Authority's ruling.Whether the refusal to consider expert evidence and relevant material amounts to a breach of natural justice.Whether the petitioner can bypass the alternative statutory remedy under the Customs Act on grounds of jurisdictional error or breach of natural justice.The scope of the Appellate Tribunal's powers under Sections 129A and 129B of the Customs Act, 1962.

RULINGS / HOLDINGS:

The argument that the impugned order is wholly without jurisdiction is rejected because "investigation into facts, at least to a limited extent, would be necessary" and such fact-finding is best undertaken by the Appellate Tribunal.The refusal to consider expert evidence does not constitute a breach of natural justice as the Petitioner was issued a show cause notice and heard before the order was passed; any grievance regarding non-consideration of material can be addressed in appeal.The principles in Whirlpool Corporation Vs Registrar of Trade Marks and Oberoi Constructions Ltd Vs Union of India apply only if the order is "ex facie without jurisdiction" or the breach of natural justice is "patent and admits of no serious dispute," which was not established in this case.The Appellate Tribunal under Sections 129A and 129B of the Customs Act has "wide and substantial powers" including confirming, modifying, annulling, or remanding the order with directions for fresh adjudication and taking additional evidence, making the statutory remedy efficacious and precluding circumvention.The petition is dismissed with liberty to the Petitioner to avail of the alternate statutory remedy under the Customs Act.

RATIONALE:

The Court applied the statutory framework under the Customs Act, 1962, particularly Sections 129A and 129B, which provide a comprehensive appellate mechanism with broad powers vested in the Appellate Tribunal.The Court emphasized the principle that orders are not to be interfered with on jurisdictional grounds without preliminary fact-finding, which is within the purview of the Appellate Tribunal.The Court relied on established precedents requiring that to bypass alternative remedies, the petitioner must demonstrate that the order is "ex facie without jurisdiction" or that there is a "patent" breach of natural justice, criteria not met here.The Court reaffirmed the principle of exhaustion of alternate statutory remedies and declined to interfere in the absence of a clear, undisputed violation of jurisdiction or natural justice.No dissent or doctrinal shift was noted; the judgment follows settled legal principles concerning jurisdiction, natural justice, and appellate remedies under customs law.