Md. Mehar Ali vs. The Union Of INDIA

Facts

The petitioner, Md. Mehar Ali, challenged an order dated 30.08.2021 passed by the Commissioner (Appeals) Customs, CGST & Central Excise, Patna. This order rejected the petitioner's appeal against an earlier order dated 09.11.2016 passed by the Assistant Commissioner, Custom Preventive, Division Farbesganj. The petitioner sought quashing of the appellate order, alleging it was passed without judicial application of mind and in violation of natural justice. He also sought the refund of a redemption fine of Rs. 70,000/- and a penalty of Rs. 20,000/-, totaling Rs. 90,000/-, which he claimed were illegally imposed without valid reason, along with 18% panel interest.

Held

The Court did not decide the merits of the petitioner's claim regarding the alleged violation of natural justice or the illegality of the imposed fine and penalty. Instead, the Court permitted the petitioner to approach the appellate authority (Tribunal) as advised by the revenue. The Court directed that the period during which the petitioner pursued the matter before the High Court would be excluded for the purpose of computing the limitation for filing the appeal. The Court further requested the authority to decide the appeal expeditiously, preferably within three months, in accordance with the law, after complying with the principles of natural justice and granting the petitioner an adequate opportunity to present relevant materials. The petition was disposed of in these terms.

Key Issues

1. Whether the order dated 30.08.2021 passed by the Commissioner (Appeals) Customs, CGST & Central Excise, Patna, is liable to be quashed for being passed without application of judicial mind and in violation of the principles of natural justice? Petitioner's Contention: The petitioner argued that the Commissioner (Appeals) failed to apply judicial mind and violated principles of natural justice in rejecting his appeal. Revenue's Contention: The learned Additional Solicitor General, representing the revenue, pointed to Clause 3 of the instructions forming part of the impugned order. He stated that the Tribunal is fully functional and the petitioner can file an appeal under Section 129E of the Customs Act, 1962, as findings of fact must be adjudicated by the last fact-finding authority.