TMI Blog2019 (9) TMI 229X X X X Extracts X X X X X X X X Extracts X X X X ..... es to value of goods for the purpose of assessment, the appeal would lie to this Court and in all other cases it would lie before the High Court. The issue is no more res integra - In a catena of the judgments, right from the judgment of this Court in the case of Navin Chemicals Manufacturing Trading Company Ltd. vs. Collector of Customs, [ 1993 (9) TMI 107 - SUPREME COURT] , the position has been clarified - it has been held that appeal dismissed on the ground that the appellants were in error in contending that their appeal before CEGAT ought to have been heard by a Special Bench and could not have been heard and decided by a member of CEGAT, sitting singly. This Court, while considering the provisions of Section 130 and Section 130E of the Customs Act, has held that where an appeal involves determination of any question that has relation to customs duty for the purpose of assessment or where an appeal involves determination of any question that has relation to the value of goods for the purposes of assessment, such cases will have to be treated separately and have to be given special treatment. The only question that is involved is whether the assessee had violated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... would refer to the facts in Civil Appeal No. 10083/2011, inasmuch as the impugned judgment and order(s) in all other connected appeals are passed following the judgment and order passed by the Karnataka High Court in CS TA No. 2/2007. 4. The assessee is a leading manufacturer of pagers. The assessee is entitled to the benefit of Notification No. 30/1997 Customs dated 01.04.1997 (hereinafter referred as the said notification ) by which the materials imported into India for the manufacturing of the pagers were exempted from whole of the customs duty leviable in the First Schedule of the Customs Tariff Act, 1975 and further whole of the additional duty leviable thereon under Section 3 of Customs Tariff Act, 1975. As per the scheme framed under the said notification, the goods imported under the actual user condition were required to be used only for the manufacture of the declared final product. A specific intelligence was received by the Director of Revenue Intelligence to the effect that the assessee had stopped manufacturing of pagers and hence a certain portion of the duty free material imported under the Scheme had been written off in their books of accounts. The off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore the High Court but would be tenable under Section 130E of the Customs Act before this Court. Being aggrieved thereby, the Revenue is in appeal before this Court. 7. We have heard Ms. Pinky Anand, learned Additional Solicitor General appearing on behalf of the appellant-Revenue and Mr. Balbir Singh, learned Senior Counsel appearing on behalf of the respondent-assessee. 8. For appraising the rival contentions, it would be apposite to refer to Section 130 and Section 130E of the Customs Act, 1962 (as it existed prior to its amendment by the Finance Act, 2018). They read as follows: 130. Appeal to High Court- (1) An appeal shall lie to the High Court from every order passed in appeal by the Appellate Tribunal on or after the 1st day of July, 2003 (not being an order relating, among other things, to the determination of any question having a relation to the rate of duty of customs or to the value of goods for purposes of assessment), if the High Court is satisfied that the case involves a substantial question of law. (2) The Principal Commissioner of Customs or Commissioner of Customs or the other party aggrieved by any order p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... High Court and such point shall be decided according to the opinion of the majority of the Judges who have heard the case including those who first heard it. (9) Save as otherwise provided in this Act, the provisions of the Code of Civil Procedure, 1908 (5 of 1908) relating to appeals to the High Court shall, as far as may be, apply in the case of appeals under this section. Xxx 130E. Appeal to the Supreme Court-An appeal shall lie to the Supreme Court from (a) Any judgment of the High Court delivered- (i) In an appeal made under Section 130; or (ii) On a reference made under Section 130 by the Appellate Tribunal before the 1st day of July, 2003; (iii) On a reference made under Section 130A, in any case which, on its own motion or on an oral application made by or on behalf of the party aggrieved, immediately after the passing of the judgment, the High Court certifies to be a fit one for appeal to the Supreme Court; or (b) Any order passed [before the establishment of the National Tax Tribunal] by the Appellate Tribunal relating, among other things, to the determination of any question ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relates to the meaning to be given to the expression determination of any question having a relation to the rate of duty of customs or to the value of goods for purposes of assessment . It seems to us that the key lies in the words for purposes of assessment therein. Where the appeal involves the determination of any question that has a relation to the rate of customs duty for the purposes of assessment that appeal must be heard by a Special Bench. Similarly, where the appeal involves the determination of any question that has a relation to the value of goods for the purposes of assessment, that appeal must be heard by a Special Bench. Cases that relate to the rate of customs duty for the purposes of assessment and which relate to the value of goods for the purposes of assessment are advisedly treated separately and placed before Special Benches for decision because they, more often than not, are of importance not only to the importers who are parties thereto but also to many other importers who import or propose to import the same or similar goods. Since the decisions of CEGAT in such matters would have wide application they are, by the terms of the statute, to be rendered by S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on to customs duty for the purpose of assessment or where an appeal involves determination of any question that has relation to the value of goods for the purposes of assessment, such cases will have to be treated separately and have to be given special treatment. 13. Recently, again this Court, in a decision, in the case of Steel Authority of India Ltd. Vs. Designated Authority, Directorate General of Anti-Dumping Allied Duties, reported in (2017) 13 SCC 1, has reiterated the same position. It would be appropriate to refer to para 18 of the said judgment which reads as follows: 18. Section 130-E(b) of the Act provides for a direct appeal to the Supreme Court against an order of the Appellate Tribunal, broadly speaking, on a question involving government revenue. This seems to be in view of the fact that the order that would be under appeal i.e. (order of the Appellate Tribunal) may go beyond the inter se dispute between the parties and effect upon a large number of assessees. The issue, in such an event, surely will be one of general/public importance. Alternatively, the question raised or arising may require interpretation of the provisions of the Constitu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exus to the question of determination of the applicable rate of duty or to the determination of the value of the goods for the purposes of assessment of duty. This is a sine qua non for the admission of the appeal before this Court under Section 130-E(b) of the Act. (ii) The question raised must involve a substantial question of law which has not been answered or, on which, there is a conflict of decisions necessitating a resolution. (iii) If the Tribunal, on consideration of the material and relevant facts, had arrived at a conclusion which is a possible conclusion, the same must be allowed to rest even if this Court is inclined to take another view of the matter. (iv) The Tribunal had acted in gross violation of the procedure or principles of natural justice occasioning a failure of justice. 22. The above parameters, which by no means should be considered to be exhaustive, may now be applied to the case of the parties before us to decide the primary question indicated at the outset of the present order, namely, whether this appeal deserves to be admitted. 16. We are of the considered view that the Legislature has carved ..... X X X X Extracts X X X X X X X X Extracts X X X X
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