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Wednesday, November 20, 2013

Customs, Excises and Gold (Control) Appellate Tribunal

The Customs, Excise an Gold (Control) Appellate Tribunal (in short  Appellate Tribunal) was established in 1982 by the Central Government under section 129 of the Customs Act, 1962. It started functioning from 12 October 1982. The Appellate Tribunal as its name suggests hears the appeals under Section 129A of the Customs Act, 1962, 35b of the Central Excise and Salt Act, 1944, and section 81 of the Gold (Control) Act, 1968. It consists of as many judicial and technical members as are deemed proper by the Central Government to exercise and discharge the functions conferred on the Appellate Tribunal.

        A judicial member is one who has held for at least 10 years a judicial officer in the territory of India, or who has been a member of the Central Legal Service, or has held a post in Grade I of that service or equivalent or higher post for at least three years, or has been an advocate for 10 years, etc. A technical member is one who has been a member of the Indian Customs and Central Excise Service, Group 'A', and has held the post of Collector of Customs or Central Excise or any equivalent or higher post for at least three years. Out of these members one of the members is appointed President, and one and more of members can be appointed Vice-President. One of the said Vice-Presidents can also be appointed as Senior Vice-President. The Senior Vice-President and vice-President exercise such powers and perform such functions of the President as may be delegated to them by the President through a general or special order in writing.

     The appeals against the decision or order relating to the determination of any question having relation to the rate of duty or the value of goods, for the purposes of assessment, is heard by a Bench consisting of at least two members out of which at least one is judicial member and, one a technical member. These Benches are called Special Benches. There are, at present, five such Benches, and presently they are holding   their sittings at 2, West Block, R. K. Puram, New Delhi. The other Benches also, usually consist of two members and out of these one is usually a judicial member and the other a technical one. The other Benches hear appeals pertaining to matters other than those relating to the rate of duty or value of goods for the purpose of assessments. They are called Regional Benches. At present, there are four Regional Benches functioning – the Central Regional Bench at Delhi, East Regional Bench at Calcutta, South Regional Bench at Madras and West Regional Bench at Bombay.

    In addition, the President is also empowered to constitute Single Benches, i.e. a Bench comprising a single member to dispose of appeals where questions involving determination of rate of duty of excise, value of the goods for the purposes of assessment, or the difference in duty are not the issues, and where the amount of fine or penalty involved does not exceed Rs 50,000.

 The Appellate Tribunal after giving the parties to appeal an opportunity of being heard, is empowered to pass order as it thinks fit confirming, modifying or annulling the decision or order appealed against. It can also refer the case back to the authority, which had passed the decision or order which had been appealed against, with such directions as it may think fit for fresh adjudication or decision, and if required, even by taking additional evidence. The Appellate Authority is not empowered to review its own decisions. However, if there are mistakes apparent from the records it can amend any order passed by it, and rectify any such mistake brought to its notice by the Collector or the parties to the appeal within four years of the date of order.

Ordinarily, the appeals are entertained by the Appellate Tribunal when the duty demanded in respect of goods or the penalties imposed by the inferior authorities are deposited. However, it is empowered to hear the appeal without insisting the deposit of the said amount or part of  the said amount, in case it is of opinion that the deposit  of duty demanded or penalty levied would cause undue hardship to such party. It can, while dispensing with such deposits, impose such conditions as it may deem fit to safeguard the interest of revenue.

    The decisions of the Benches of the Appellate Authority are by majority. If the members of a Bench differ on opinion on any point, and if the members are equally divided, they are required to state the point or points on which they differ and make a reference to the President. The President on receipt of such reference would either hear the point or points himself, or would refer the case for hearing on such point or points to one or more of the other members of the Appellate Tribunal. The decision on such point or points is taken according to the opinion of the majority of those members who heard the case including those who first heard it.

   The Appellate Tribunal upon an application of either of the parties is empowered to refer to the High Court any question of law by drawing up a statement of case. The case referred to the High Courts are heard by a Bench comprising at least two judges of the High Court and is decided in accordance with the opinion of such judges or the majority of such judges. Similarly, in case there are conflict in decisions of the High Court on a particular question of law, and the Appellate Tribunal deems it expedient that a reference be made to the Supreme Court. It can draw a statement of case and refer it through the President direct to the Supreme Court. The Supreme Court on hearing any such reference would decide the question referred to it. The Appellate Tribunal upon receipt of opinion /judgement on reference from the High Court or the Supreme Court, as the case may be is required to pass such orders as are necessary to dispose of the appeal in hand in conformity with the said opinion/judgement of the High Court of the Supreme Court.

     The Appellate Tribunal is the final fact finding authority. However, appeal to the Supreme Court is provided against the judgement of the High Court delivered on a reference, if the High Court certifies the same to be fit for an appeal to the Supreme Court or against the order of the Appellate Tribunal relating, among other things, to the determination of any question having a relation to the rate of duty or the value of goods for the purpose of assessment. The decisions of the Appellate Authority except being as provided herein before, are final and binding on the parties.

                 The Appellate Tribunal subject to the provisions of the Customs Act, 1962 has powers to regulate its own procedure and the procedure of the Benches in all matters arising out of the exercise of its powers or discharge of its function including the place at which the Benches should hold their sittings. The Appellate Tribunal for the purpose of discharging its functions also has the same powers as are vested in a court under the Code of Civil Procedure, 1908 in respect of discovery and inspection, enforcement of attendance of a person and examining him on oath, compelling the production of books of accounts and other documents, and issuing commissions. The proceedings before the Appellate Tribunal are deemed to be judicial proceedings within the meaning of Section 193 and 228 of the Indian Penal Code, 1860. The Appellate Tribunal is also deemed to be a civil court for all the purposes of Section 195 of Chapter XXVI of the Code of Criminal Procedure 1973.

       At the hearing of the appeal before the Appellate Tribunal, a party to the appeal can either engage a legal practitioner or authorise its representative, which may include its employee, to appear and argue their case. In other words, individuals other than advocates if authorised by the parties to appeal can appear and act for the said party.

 

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