The Customs Appellate Tribunal has decided to proceed with the adjudication of a case involving the classification of Squid Liver Powder, even though the matter has been challenged before the Hon’ble High Court of Madras.
The bench of Ajayan T.V. (Judicial Member) and M. Ajit Kumar (Technical Member) has observed that prima facie, appeals involving questions related to customs duty rates or classification issues lie directly before the Supreme Court under Section 130E of the Customs Act. Referring to the precedent laid down by the Supreme Court in Kunhayammed vs. State of Kerala , it emphasized that the filing of an appeal or Special Leave Petition (SLP) does not automatically affect the finality of the impugned order unless there is an express stay.
The appellant had requested that the Tribunal keep the current proceedings pending in view of the ongoing High Court case. However, the Tribunal noted that no order staying the proceedings had been produced by either party.
The Supreme Court had clarified in Kunhayammed that once leave to appeal is granted, the finality of the order under challenge is placed in jeopardy. However, until such leave or stay is granted, the judgment remains binding and enforceable between the parties.
The Tribunal also cited the landmark judgment of the Supreme Court in Union Territory of Ladakh & Ors. vs Jammu & Kashmir National Conference & Anr. [2023 INSC 804], where the Apex Court reiterated that High Courts and quasi-judicial authorities must decide matters based on prevailing law and cannot defer decisions merely because a related matter is pending before a larger bench or under review.
The Supreme Court categorically held that unless specifically directed, no court or tribunal can await the outcome of references or review petitions. Furthermore, in case of conflicting judgments by benches of equal strength, the earlier decision must be followed, as clarified in National Insurance Co. Ltd. v. Pranay Sethi (2017) 16 SCC 680.
In light of these legal principles, the Tribunal concluded that there was no legal impediment to deciding the matter. It stressed that no stay or directive from any superior court had been brought to its notice that would restrict the continuation of the proceedings.
Case Details
Case Title: M/s. Avanti Feeds Limited Versus Commissioner of Customs (Import)
Case No.: Customs Appeal Nos.42136 of 2015
Date: 12.08.2025
Counsel For Appellant: B.Venugopal, Advocate
Counsel For Respondent: Anandalakshmi Ganeshram
