6th September, 2019
3-Judge Bench of the Supreme Court has on 5-9-2019 held that an appeal against the CESTAT Order, involving violation of conditions of Customs exemption notification, would lie before the High Court and not the Supreme Court.
The Court, in the case of Commissioner v. Motorola India Ltd., hence set aside the High Court Order which had held that the question, whether terms and conditions of notification were complied, was related to determination of rate of duty.
The Division Bench of the High Court had hence held that the said appeal under Section 130 of the Customs Act, 1962 was not tenable before the High Court but would lie before the Supreme Court under Customs Section 130E.
The assessee, as per the department, had allegedly violated the conditions of the exemption notification by not utilizing the imported materials for manufacturing of the declared final product and was, therefore, liable for payment of duty, interest and penalty.
Remanding the matters back to the High Court, the Apex Court observed that the question involved was not related to determination of rate of duty, valuation, determination of classification of goods, or coverage under exemption notification. It also observed that the appeals not involved any question of law of general public importance which would be applicable to a class or category of assessees as a whole.