1. Challenge to anti-dumping duty notification on imported graphite electrodes — Appeal against Tribunal order under Section 130E(b), Customs Act, 1962. (Para 21 )
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2017 Supreme(SC) 360
SUPREME COURT OF INDIA
RANJAN GOGOI, ASHOK BHUSHAN, JJ.
Steel Authority of India Ltd. - Appellant
Versus
Designated Authority, Directorate General of Anti-Dumping & Allied Duties & Ors. - Respondents
Civil Appeal No. 241 of 2017
Decided On : 17-04-2017
Important Points
IMPORTANT POINT
Only those questions of importance, involving issues of law going beyond the inter partes rights and extending to a class or category of assessees as a whole are required to be decided by Supreme Court.
Only those questions of importance, involving issues of law going beyond the inter partes rights and extending to a class or category of assessees as a whole are required to be decided by Supreme Court.
Subject
Appellate Jurisdiction - Supreme Court
Act Referred
CIVIL PROCEDURE CODE: S.109, S.100
CONSTITUTION OF INDIA: Art.132, Art.133, Art.134, Art.138, Art.136
CUSTOMS ACT: S.13(e)(b), S.131, S.129(d)(d), S.130
NATIONAL TAX TRIBUNAL ACT: S.23
CONSTITUTION OF INDIA: Art.132, Art.133, Art.134, Art.138, Art.136
CUSTOMS ACT: S.13(e)(b), S.131, S.129(d)(d), S.130
NATIONAL TAX TRIBUNAL ACT: S.23
Headnote
(a) Customs act, 1962 – Section 130E(a), (b) and 130F – Section 130E(a) providing for appeal to Supreme court against an order or judgment of High Court either in exercise of the appellate or reference jurisdiction – At the same time, a direct appeal lies to Supreme Court against an order passed by appellate tribunal relating to the question of duty or classification of goods – Section 130F providing for appeal to Supreme Court from an order of High Court in exercise of its appellate or reference jurisdiction, or against the order of the appellate tribunal – Therefore there is no reason why appellate power of Supreme Court under Section 130E(b) against the order of the appellate tribunal should be construed in a manner different from the contours of the appellate power under Section 130E(a) against the order of the High Court. (Para 13)
(b) Customs Act, 1962 – Section 130E(b) r/w section 109, Civil Procedure Code, 1908 and Articles 132, 133, 134 and 134A, Constitution of India – Direct appeal to Supreme Court – Only those questions of importance, involving issues of law going beyond the inter partes rights and extending to a class or category of assessees as a whole – Required to be decided by Supreme Court – Pre-conditions for admitting appeal u/s 130E(b), not exhaustive, stated. (Para 17, 19)
(1993) 4 SCC 320; AIR 1988 SC 2176 – Relied upon
(c) Section 130E(b) – Appellate Tribunal arriving at its findings on due consideration of all relevant materials on record – No intrgferebce warranted. (Para 24)
AIR 1988 SC 2176 – Relied upon
Facts of the case:
This case relates to precise determination of scope of sections 130E(b) and 130F of the Customs Act, 1962.
Finding of the Court:
Findings of the appellate tribunal do not warrant interference.
Result: Appeal dismissed.
Legal Category Hierarchy
Table of Contents
2. Determination of normal value of goods by Designated Authority was impermissible — Excessive confidentiality applied in the report of the Designated Authority. (Para 21 )
3. Appellate power under Section 130E(b) must be construed in harmony with the Supreme Court's constitutional role, limiting appeals to substantial questions of law of general importance. (Para 12 , 13 , 15 , 16 , 17 )
4. Admission under Section 130E(b) requires a direct nexus to duty rate or value, a substantial question of law, or gross violation of natural justice. (Para 19 )
5. Appeal dismissed by refusing admission as the Tribunal's findings were based on material facts and constituted a possible conclusion. (Para 24 , 25 )
6. What are the conditions for admitting an appeal under Section 130E(b) of the Customs Act, 1962?
The appeal must have a direct or proximate nexus to the determination of the applicable rate of duty or value of goods, involve a substantial question of law not yet resolved, or involve a gross violation of the principles of natural justice. (Para 19 )
7. Can the Supreme Court interfere with a Tribunal's factual findings under Section 130E(b)?
No. If the Tribunal arrived at a possible conclusion based on relevant facts and acted bona fide, the Supreme Court will not interfere even if a different perspective or view is possible. (Para 18 , 19 )
8. How does Section 130F of the Customs Act affect appeals to the Supreme Court?
Section 130F makes the provisions of the Code of Civil Procedure relating to appeals to the Supreme Court from decrees of a High Court applicable to appeals under Section 130E. (Para 12 , 13 )
9. How should the Supreme Court's statutory appellate jurisdiction under the Customs Act be interpreted in light of the Constitution?
It must be construed in harmony with the Court's constitutional role, focusing on questions of general or public importance or constitutional interpretation that extend beyond the rights of the immediate parties. (Para 16 , 17 )
JUDGMENT :
Ranjan Gogoi, J.
1. Order on the admission of this appeal has been kept pending to enable the Court to ascertain the true sweep and purport of the appellate power of this Court under Section 130E(b) of the Customs Act, 1962 (as amended). The language of the above provision of the Act having indicated a very broad and expansive appellate jurisdiction, the precise contours thereof were felt necessary to be determined and the admissibility of the present appeal tested on the aforesaid basis.
2. It may be worthwhile at the very outset to delve into the history of the taxation regime under the Act to notice the changes that had occurred from time to time.
3. Against the assessment of customs duty made by different assessing authorities under the Act, viz., Deputy Collector of Customs/Collector of Customs, initially, an executive appellate remedy before the Collector of Customs and before the Central Board of Customs Excise and Customs, depending on the authority which has passed the initial order of assessment, was provided. There was a power of suo motu revision with the Board as well as a revisional jurisdiction to be exercised on an application by an aggrieved person. The Central Government under Section 131 (originally enacted) and under Section 129DD (Substituted by Act 21 of 1984) was also vested with a revisional jurisdiction.
4. By the Finance Act No.2 of 1980, a quasi- judicial authority, namely, Customs Excise and Gold (Control) Appellate Tribunal (CEGAT) was constituted to hear appeals against orders of the Collector as well as the orders of the Board. The said Tribunal came to be known as Customs, Excise and Service Tax Appellate Tribunal (CESTAT), with the introduction of levy of service tax. The CEGAT and its successor CESTAT were constituted as specialized quasi-judicial appellate bodies to decide all issues relating to duty assessment under the Customs Act. There was no provision of appeal to the jurisdictional High Court against the order of the appellate tribunal. However, under Section 130 of the Act a Reference jurisdiction was vested in the High Court on a question of law not relating to the determination of any question having a relation to the rate of duty of customs or to the value of the goods for the purpose of assessment.
Under Section 130 A, introduced by the Finance Act, 1980, a Reference jurisdiction was also conferred in the Supreme Court in case the Appellate Tribunal was of the opinion that on account of a conflict in the decisions of the High Courts on the same question of law, a reference to the Supreme Court is necessary. Under Section 130 E(a) an appeal was provided to the Supreme Court from any judgment of the High Court delivered on a Reference, where the High Court certified the case to be a fit one for appeal to the Supreme Court. Under Section 130 E(b) against any order passed by the Appellate Tribunal 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, an appeal was also provided to the Supreme Court. Section 130 F of the Customs Act, 1962 provided that the provisions of Civil Procedure Code, 1908 relating to appeals to the Supreme Court shall, so far as may be, apply in the case of appeals under Section 130 as they apply in the case of appeals from decrees of a High Court.
5. An amendment though not of any significant consequence, made in the year 1999 may also be noticed. The reference jurisdiction of the High Court under Section 130 which was to be exercised at the instance of the Appellate Tribunal was continued in respect of orders passed, under Section 129B, by the Appellate Tribunal on or before 1.7.1999. However, under Section 130 A substituted by the Finance Act (No.27) of 1999 the Reference jurisdiction in respect of orders passed by the Appellate Tribunal on or after 1.7.1999 was to be exercised by the High Court on an application made to it seeki
