Court denies respondents' right to challenge appeal maintainability at the pre-admission stage under Section 130 of the Customs Act, 1962.
In a landmark judgment, the Division Bench of the Calcutta High Court, comprising Justices Rajarshi Bharadwaj and Uday Kumar, has reaffirmed the procedural architecture of the Customs Act, 1962, by ruling that respondents in customs appeals do not possess the locus standi to challenge the maintainability of appeals at the pre-admission stage. This decision came in the context of multiple appeals filed by the Commissioner of Customs against various orders of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Eastern Zonal Bench, Kolkata.
The respondents, M/s Greenpanel Industries Limited and others, had argued that the court should hear their objections concerning jurisdiction and maintainability before admitting the appeals. They invoked Rule VI of the High Court at Calcutta (Original Side) Rules, 1914, suggesting it grants discretionary power for such preliminary hearings. They further drew parallels to civil appellate procedures under the Code of Civil Procedure, arguing for procedural fairness.
However, the court emphasized that Section 130 of the Customs Act follows a two-stage appellate process: an inquisitorial admission phase followed by a fully contested final hearing. The Bench clarified that the admission stage is a summary screening process where the court determines the existence of a substantial question of law based solely on the memorandum of appeal, without respondent intervention.
The judges cited prior Supreme Court judgments, including R. Nagaraj v. Rajmani, to underline the legislative intent behind this sequence. The judgment stressed that the procedural rules cannot override the primary legislation and that allowing respondent participation at this stage would disrupt the efficiency of the appellate framework.
The decision underscores the importance of maintaining procedural integrity and consistency in appellate procedures, reaffirming that respondents can only raise objections at the final hearing stage, thereby preserving their rights without impeding the statutory process.
The court directed the respondents to withdraw from the bar, moving forward with an ex-parte admission hearing scheduled for July 21, 2026.
Bottom line:-
In a Customs Appeal filed under Section 130 of the Customs Act, 1962, the respondent does not possess the locus standi to challenge the maintainability of the appeal at the pre-admission stage. Such challenges can only be raised during the final hearing under Section 130(5), maintaining the procedural integrity and statutory sequence of the appellate process.
Statutory provision(s): Customs Act, 1962 Section 130, Rule VI, Part XX, Chapter XXXVIII of the High Court at Calcutta (Original Side) Rules, 1914
