Madras High Court: Tribunal Jurisdiction Limited to Scope of Appeal in Absence of Revenue Challenge

The Madras High Court has delivered a significant judgment regarding the jurisdictional limits of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT). In the matter of Antoine & Becouerel Organic Chemical Co. Vs Customs Excise and Service Tax Appellate Tribunal, the Court held that the Tribunal cannot traverse beyond the scope of an appeal filed by an assessee to order absolute confiscation of goods, particularly when the Revenue department has not challenged the original order permitting redemption and re-export.

Factual Matrix of the Dispute

The controversy originated from an Order-in-Original dated 28.03.2014. The adjudicating authority had ordered the confiscation of goods imported by the assessee under Section 111(d) of the Customs Act, 1962, read alongside the provisions of the Drugs and Cosmetics Act, 1940.

Despite the confiscation order, the authority exercised discretion under Section 125(1) of the Customs Act, 1962. The assessee was granted the option to redeem the confiscated goods solely for the purpose of re-exporting them to the foreign supplier. This relief was subject to the payment of a redemption fine quantified at Rs. 7,00,000.