CESTAT Chennai Bench Declines Jurisdiction; Appeals Referred to President for Special Bench Constitution

Appeals Arising from Common Order-in-Original to Be Consolidated for Hearing as per CESTAT Notification

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) Chennai Bench, in a pivotal decision dated September 23, 2025, declined jurisdiction over appeals filed by M/s. Habasit Iakoka Pvt. Ltd. and others. The appeals arose from a common Order-in-Original passed by the Commissioner of Central Excise, Customs & Service Tax, Surat - I. The tribunal highlighted the principle of comity of courts, given that a related appeal had already been heard by the Ahmedabad Bench of CESTAT.

The case centered around allegations of fraudulent exports by several entities, including M/s. Ayush Exports and Astha Exim from Surat, who reportedly overvalued goods to gain undue export incentives. The Commissioner, in his adjudication, imposed customs duties and penalties on various parties, including the appellants, under the Customs Act, 1962.

The Chennai Bench, comprising Shri. M. Ajit Kumar (Technical) and Shri. Ajayan T.V. (Judicial), noted that the jurisdictional challenge was pivotal, as jurisdiction must be conferred explicitly and cannot be assumed or altered by party consent. The appeals were initially filed in Chennai due to the appellants' operations through Chennai Port, as guided by the CEGAT Notification No. 5/1995. However, with the Ahmedabad Bench already addressing a related appeal, the Chennai Bench opted to defer jurisdiction.

Both parties submitted written arguments regarding jurisdiction, and the tribunal, considering the submissions and relevant notifications, decided to refer the matter to the Hon'ble President of CESTAT. The President is to issue a special order constituting a single bench to hear all related appeals, ensuring consistency and judicial efficiency as per CESTAT Notification No. 1/2022.

This decision underscores the importance of coordinated judicial processes in cases involving multiple jurisdictions and highlights the tribunal's adherence to legal principles and procedural fairness.

Bottom Line:

Jurisdiction of CESTAT - Appeals arising from the same Order-in-Original filed before different Benches of CESTAT - Principle of comity of courts to be followed - Matter to be referred to the Hon'ble President of CESTAT for constituting a Bench to hear and decide the appeals as per CESTAT Notification No. 1/2022 dated 24.01.2022. 

Statutory provision(s): Customs Act, 1962, CESTAT Notification No. 1/2022, CEGAT Notification No. 5/1995

Habasit Iakoka Pvt. Ltd. v. Commissioner of Customs, (CESTAT)(Chennai) : Law Finder Doc Id # 2784473