By TIOL News Service

CHENNAI, MARCH 22, 2014: The issue involved is whether the coal imported by the assessee can be classified under heading 2701.19 and charged to 15% duty as contended by the assessee or should be classified under heading 2701.12 and charged to 25% duty as contended by the department. The Tribunal allowed the appeal of the assessee in (2009-TIOL-1851-CESTAT-MAD). Against this order, the department is now before the High Court. Yes, before a High Court on a classification issue.

Obviously, the respondent raised a preliminary objection on jurisdiction and the High Court had no hesitation in dismissing the appeal by holding:

A conjoint reading of the two Sections (Section 130A and Section 130E (b) of the Customs Act, 1962) would clearly go to show that, with regard to determination of any question having a relation to the rate of duty of customs or to the value of goods for the purpose of assessment, Appeal shall lie before the Supreme Court.

In the instant cases, two aspects are involved. The first and foremost is only with regard to imposition of customs duty and the second aspect is classification of goods.

With regard to first aspect, as per Section 130E (b) of the Customs Act, 1962, against the order passed by the Tribunal, an Appeal shall lie before the Apex Court and with regard to second aspect also, on the basis of the consistent decisions referred to (by the respondent), against the order of Tribunal, an Appeal shall lie before the Apex Court.

The main grievance expressed on the side of the appellant is that the Tribunal has not given a specific finding with regard to classification of goods. Even in that case also, appeal shall lie before the Supreme Court. Therefore, viewing from any angle, these Civil Miscellaneous Appeals are not at all maintainable before this Court and altogether the same are liable to be dismissed.

(See 2014-TIOL-346-HC-MAD-CUS)