Legal principle

An appeal to CESTAT against an order relating to payment of duty drawback is barred by proviso clause (c) to Section 129A(1) of the Customs Act, 1962; the remedy lies in a revision under Section 129DD before the Central Government, and a defect of subject-matter jurisdiction cannot be cured by consent, waiver or acquiescence.

Court decision

The Tribunal held that under the proviso to Section 129A (clause (c)), it has no jurisdiction over appeals relating to payment of drawback under Chapter X, and accordingly the appeals filed against the Commissioner (Appeals) orders were not maintainable; it disposed of the appeals but, as the filing before the wrong forum was a genuine mistake, granted the appellant 'leave' to file revision applications before the Government of India under Section 129DD with condonation of delay, without penalising the appellant.

Facts

M/s Titagarh Wagons Limited, a manufacturer of wagons and engineering goods, had a 2017 contract with the Government of Nepal to supply 30 Modular Steel Bridges (27 of Indian origin, 3 of French origin). Two French-origin bridges, earlier imported from France, were exported to Nepal and the appellant claimed re-export duty drawback of Rs. 80,12,153/- under Section 74 of the Customs Act, 1962 read with the Re-export of Imported Goods (Drawback of Customs Duties) Rules, 1995. The Joint Commissioner, LCS Raxaul issued a show cause notice alleging wrongful claim under Rule 6 of the said Rules, and the Deputy Commissioner, LCS Raxaul rejected the drawback claim in Order-in-Original dated 07.02.2020. The Commissioner (Appeals), Patna upheld the rejection in two Orders-in-Appeal dated 26.02.2021, and the appellant filed the present appeals before the Tribunal.

Key provisions

• Section 129A, Customs Act, 1962 — Appeals to the Appellate Tribunal
• Section 129(dd), Customs Act, 1962 — Appellate Tribunal
• Section 74, Customs Act, 1962 — Drawback allowable on re-export of duty-paid goods
• Section 129DD, Customs Act, 1962 — Revision by Central Government
• Rule 6, Re-export of imported goods (Drawback of Customs duties) Rules, 1995 — Payment of drawback and interest