Smuggling gold bars - No appeal before High Court if value of goods and penalty below 1 Crore
Manipur High Court Dismisses Customs Appeal, Upholds Monetary Threshold Limits. Appeal over alleged smuggling dismissed due to insufficient monetary value under CBIC guidelines
In a significant ruling, the Manipur High Court has dismissed the appeal filed by the Commissioner of Customs (Preventive) against Shri R.K. Swami Singh and others, citing the monetary threshold limits set by the Central Board of Indirect Taxes & Customs (CBIC). The appeal was dismissed because the value of the disputed goods and penalty did not meet the minimum threshold required for filing appeals in the High Court, as per the CBIC Instruction dated November 2, 2023.
The case involved the interception of 12 pieces of gold biscuits from the respondent on June 20, 2014, valued at approximately Rs. 49.74 lakhs. The gold was alleged to have been smuggled from Myanmar to India without proper documentation or payment of customs duty. Despite the respondent's arrest and subsequent legal proceedings, the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) had earlier dismissed the allegations, citing insufficient evidence to prove the smuggled nature of the gold bars.
The appellants challenged the CESTAT's decision, seeking to overturn the tribunal's order. However, the High Court, led by Chief Justice K. Somashekar and Justice A. Guneshwar Sharma, upheld the tribunal's findings. The court highlighted the CBIC's guidelines, which set a Rs. 1 crore threshold for High Court appeals, noting that the appeal did not fall within the exceptions that could warrant a case despite lower monetary value.
The ruling reiterates the binding nature of CBIC instructions, which aim to reduce government litigation by setting monetary limits for appeals. While the appellants argued that cases involving smuggled goods should be exempt from these limits, the court disagreed, emphasizing that such exemptions were not included in the CBIC's specified exceptions.
This decision aligns with precedents from other high courts, where appeals were dismissed due to similar monetary constraints. The court's adherence to these guidelines underscores the importance of procedural compliance in customs cases and highlights the judiciary's role in enforcing government policies aimed at streamlining legal processes.
Bottom Line:
Monetary threshold limits for filing appeals as per CBIC Instruction dated 02.11.2023 - Appeal not maintainable if monetary value of dispute falls below prescribed limits - Issue of "smuggled goods" not included in exceptions under Para 2 of the Instruction.
Statutory provision(s): Customs Act, 1962 Sections 110(1), 112(b)(ii), 123, 125, CBIC Instruction dated 02.11.2023
