After Department Withdraws Co-Noticee Appeal, CESTAT Remands Sri Sai Corporation’s Customs Case For Fresh Adjudication

The appeal concerned Order-in-Appeal No. 68/2010 dated 15 December 2010.

In 2017, CESTAT had remanded the matter in light of the Delhi High Court’s decision in Mangli Impex; Revenue appealed that order to the Madras High Court.

On 3 January 2025, the High Court set aside CESTAT’s order and remitted the matter to the Tribunal for decision on merits, referring to the Supreme Court’s decision in Commissioner of Customs v. Canon India Private Limited.

The appellant relied on a separate High Court order permitting Revenue to withdraw its appeal concerning co-noticee M/s. Jitendra N. Kamdar and proceed with adjudication.

The appellant sought remand to the Original Authority so the matters could be considered together; Revenue did not object.

The Tribunal applied the procedural directions of the Madras High Court, which set aside the earlier CESTAT order and required reconsideration on merits and in accordance with law, referring to Commissioner of Customs v. Canon India Private Limited.

It also considered the High Court’s order permitting Revenue to withdraw its appeal concerning co-noticee M/s. Jitendra N. Kamdar and proceed with adjudication.

No statutory provision was identified as the basis for the Tribunal’s remand; its stated grounds were the interests of justice and consistency in proceedings involving co-noticees.

The Tribunal noted that the High Court had set aside the prior order in the appellant’s case and that Revenue had been permitted to pursue adjudication in the co-noticee’s case.

In light of these related proceedings, and without deciding the underlying merits, the Tribunal considered independent examination of this appeal inappropriate at that stage.

It therefore directed fresh adjudication and required the Original Authority to ascertain and consider, as warranted, the outcomes of Revenue’s appeals concerning the other three co-noticees.

The Original Authority was directed to ascertain the outcomes of Revenue’s appeals concerning the other three co-noticees and take them into account as appropriate.