The Mumbai Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the tribunal is not competent to alter the show cause notice.
The bench of C J Mathew (Technical Member) and Ajay Sharma (Judicial Member) while dismissing the customs department’s appeal held that tribunal is not competent to alter the show cause notice or, remand the matter back to an authority other than the one which passed the order.
The Principal Commissioner of Customs (Preventive), Mumbai filed the appeal consequent to order of Principal Commissioner of Customs (Preventive), Mumbai, disposing off show cause notice issued to seven persons, in which the proposals were confirmed except insofar as M/s CEAL Shipping & Logistics Private Ltd, who was discharged from liability to penalty under section 114AA of Customs Act, 1962, while imposing penalty under section 114 of Customs Act, 1962 was concerned.
The proceedings had been initiated in connection with an attempt to export ‘shoes’ and ‘cosmetics’ at overvalued prices with intent to avail refund of ‘integrated goods and service tax (IGST)’ beyond actual entitlement.
The relief sought in the appeal is limited to setting aside the order and for remand of the matter to the Principal Commissioner of Customs, Mumbai Zone – I to enable fresh adjudication and, purportedly, for the reason that notification of the Central Board of Indirect Taxes & Customs (CBIC), appointing several classes of ‘officers of customs’ for specified jurisdictions, did not confer authority to issue show cause notice and to adjudicate upon Commissioner of Customs (Preventive), Mumbai.
The customs department contended that only the exporter on record, viz, M/s Blue Ribbon Emporium had been made respondent and, though, other noticees were also proposed to be fastened with detrimental consequences, they had not been put to notice insofar as the appeal, and the relief sought, is concerned.
The CESTAT stated that from the jurisdictional framework of the Tribunal it may, in appeal either confirm, modify or annul a decision or order or may refer the case back, with or without direction, to the authority which undertook the decision.
The tribunal held that the appeal does not succeed as the relief sought is beyond the scope of the jurisdiction assigned to the Tribunal in section 129B of Customs Act, 1962.
Case Details
Case Title: Principal Commissioner of Customs (Preventive) Versus Blue Ribbon Emporium
Case No.: Customs Appeal No: 85092 Of 2021
Date: 20/02/2025
Counsel For Appellant: DS Maan
Counsel For Respondent: None
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