Customs Act, 1962 Section 129a — Appeals to the Appellate Tribunal

Customs Act, 1962  ·  Appeals to the Appellate Tribunal

Customs Act, 1962 Section 129a 20 Amendments CBIC Source
Type Section
Legislation Customs Act, 1962
Amendments 20

Plain-English Explanation

Plain English Summary

Overview

Section 129A of the Customs Act, 1962 outlines the process for appealing orders issued by customs authorities to the Customs, Excise and Service Tax Appellate Tribunal (CESTAT). It specifies which orders are appealable, the timelines for filing appeals, and certain conditions regarding the admissibility of appeals. This section ensures taxpayers have a legal avenue to challenge decisions they believe are unjust.

Who Does This Apply To?

This section primarily applies to:

  • Importers and Exporters: Any person aggrieved by an order passed by customs authorities.
  • Customs Officers: Specifically, the Committee of Commissioners of Customs (or the jurisdictional Principal Chief Commissioner/Chief Commissioner) who may direct the filing of an appeal against certain orders.
  • The Customs, Excise and Service Tax Appellate Tribunal (CESTAT): The body responsible for hearing and deciding these appeals.

How It Works

The process outlined in Section 129A involves the following steps:

  • Eligible Orders: An appeal can be filed against orders passed by:

    • The Principal Commissioner or Commissioner of Customs acting as an adjudicating authority.
    • The Commissioner (Appeals) (under Section 128A).
    • The Board or Appellate Commissioner of Customs (under old Section 128 and Section 130 before the "appointed day," meaning the date when certain amendments came into effect).

  • Filing the Appeal:

    • The aggrieved party must file the appeal with the CESTAT within three months from the date the order was communicated.
    • The appeal must be in the prescribed form, verified as per the rules, and accompanied by the applicable fee.
      • If the duty, interest, and penalty amount is ₹5 lakh or less, the fee is ₹1,000.
      • If the duty, interest, and penalty amount is more than ₹5 lakh, specific fee is mentioned in the relevant rule.

  • Cross-Objections: The party against whom the appeal is filed can file a memorandum of cross-objections within 45 days of receiving the notice of appeal.

  • Delay in Filing: The CESTAT has the discretion to admit an appeal or memorandum of cross-objections even after the expiry of the prescribed period if sufficient cause is shown.

  • Departmental Appeals: The Committee of Commissioners of Customs (or the Principal Chief Commissioner/Chief Commissioner) can direct a proper officer to appeal to the CESTAT if they believe an order passed by the Commissioner (Appeals) is not legal or proper.

Important Conditions & Exceptions

  • No appeal lies to the CESTAT against orders passed by the Commissioner (Appeals) related to:

    • Goods imported or exported as baggage.
    • Goods loaded for import but not unloaded at the destination.
    • Drawback payments.

  • The CESTAT may refuse to admit appeals where:

    • The value of confiscated goods (without the option to pay a fine in lieu of confiscation under Section 125) is low.
    • The difference in duty, the duty involved, or the fine/penalty determined is ₹2 lakh or less. This exception does not apply if the case involves a question relating to the rate of duty or the valuation of goods.

Practical Example

XYZ Importers receive an order from the Commissioner of Customs assessing a duty demand of ₹7 lakh along with a penalty of ₹1 lakh, totaling ₹8 lakh due to an alleged misclassification of imported goods. XYZ Importers believe the classification is correct and the duty demand is unjustified. They can file an appeal with the CESTAT under Section 129A within three months of receiving the order. The appeal must be in the prescribed form, properly verified, and accompanied by a fee.

Key Amendments

No major amendments since enactment. However, the monetary limits for appeal fees, and appealable amounts have been updated periodically over the years.

(1)Any person aggrieved by any of the following orders may appeal to theAppellate Tribunal against such order -
(a)a decision or order passed by the PrincipalCommissioner of Customs or Commissioner of Customs1 as an adjudicatingauthority;
(b)an order passed by the Commissioner(Appeals)2 under section 128A;
(c)an order passed by the Board or the Appellate Commissioner of Customs3 under Section 128, as it stood immediately before the appointed day;
(d)an order passed by the Board or the Principal Commissioner of Customs or Commissioner ofCustoms4, either before or after the appointed day, under section 130, as itstood immediately before that day :
Provided that no appeal shall lie to theAppellate Tribunal and the Appellate Tribunal shall not have jurisdiction todecide any appeal in respect of any order referred to in clause (b) if suchorder relates to, -5
(a)any goods imported or exported as baggage;5
(b)any goods loaded in a conveyance for importation into India, butwhich are not unloaded at their place of destination in India, or so much ofthe quantity of such goods as has not been unloaded at any such destination ifgoods unloaded at such destination are short of the quantity required to beunloaded at that destination;5
(c)payment of drawback as provided in Chapter X, and the rules madethereunder :5
Provided further that5 the Appellate Tribunal may, in its discretion, refuse toadmit an appeal in respect of an order referred to in clause (b) or clause (c)or clause (d) where -
(i)the value of the goods confiscated without option having beengiven to the owner of the goods to pay a fine in lieu of confiscation under section 125; or (ii) in any disputed case, other than a case where thedetermination of any question having a relation to the rate of duty of customsor to the value of goods for purposes of assessment is in issue or is one ofthe points in issue, the difference in duty involved or the duty involved; or (iii) the amount of fine or penalty determined by such order, does not exceed two lakh rupees6. (1A) Every appeal against any order of thenature referred to in the first proviso to sub-section (1), which is pending immediatelybefore the commencement of section 40 of the Finance Act, 1984, before theAppellate Tribunal and any matter arising out of or connected with such appealand which is so pending shall stand transferred on such commencement to theCentral Government and the Central Government shall deal with such appeal ormatter under section 129DD as if such appeal or matter were an application or amatter arising out of an application made to it under that section.7 (1B) (i) The Board may, 8byorder9, constitute such Committees as may be necessary for the purposes of thisAct.8
(ii) Every Committee constituted under clause (i) shall consist oftwo Chief Commissioners of Customs or two Commissioners of Customs, as the casemay be.8byorder9, constitute such Committees as may be necessary for the purposes of thisAct.
(ii)Every Committee constituted under clause (i) shall consist oftwo Chief Commissioners of Customs or two Commissioners of Customs, as the casemay be.] (2) The Committee of Commissioners of Customs may, ifit is10 of opinion that an order passed by the Appellate Principal Commissioner of Customs or Commissioner ofCustoms11 under section 128, as it stood immediately before the appointed day,or by the Commissioner (Appeals)12 under section 128A,is not legal or proper, direct the proper officer to appeal on its behalf13 to the Appellate Tribunal against suchorder:
Provided that where the Committee of 14Principal Commissioners of Customs or Commissionersof Customs15 differs in its opinion regarding the appeal against the order ofthe Commissioner (Appeals), it shall state the point or points on which itdiffers and make a reference to the jurisdictional 14Principal Chief Commissioner of Customs or ChiefCommissioner of Customs16 who shall, after considering the facts of the order,if is of the opinion that the order passed by the Commissioner (Appeals) is notlegal or proper, direct the proper officer to appeal to the Appellate Tribunalagainst such order.14
Explanation .-For the purposes of this sub-section,"jurisdictional ChiefCommissioner" means the 14Principal ChiefCommissioner of Customs or Chief Commissioner of Customs16 having jurisdictionover the adjudicating authority in the matter.14Principal Commissioners of Customs or Commissionersof Customs15 differs in its opinion regarding the appeal against the order ofthe Commissioner (Appeals), it shall state the point or points on which itdiffers and make a reference to the jurisdictional Principal Chief Commissioner of Customs or ChiefCommissioner of Customs16 who shall, after considering the facts of the order,if is of the opinion that the order passed by the Commissioner (Appeals) is notlegal or proper, direct the proper officer to appeal to the Appellate Tribunalagainst such order.
Explanation .-For the purposes of this sub-section,"jurisdictional ChiefCommissioner" means the Principal ChiefCommissioner of Customs or Chief Commissioner of Customs16 having jurisdictionover the adjudicating authority in the matter.] (3) Every appeal under this section shall be filed within threemonths from the date on which the order sought to be appealed against iscommunicated to the Principal Commissioner of Customsor Commissioner of Customs17, or as the case may be, the other party preferringthe appeal. (4) On receipt of notice that an appeal has been preferred underthis section, the party against whom the appeal has been preferred may,notwithstanding that he may not have appealed against such order or any partthereof, file, within forty-five days of the receipt of the notice, amemorandum of cross-objections verified in such manner as may be specified byrules made in this behalf against any part of the order appealed against andsuch memorandum shall be disposed of by the Appellate Tribunal as if it were anappeal presented within the time specified in sub-section (3). (5) The Appellate Tribunal may admit an appeal or permit thefiling of a memorandum of cross-objections after the expiry of the relevantperiod referred to in sub-section (3) or sub-section (4), if it is satisfiedthat there was sufficient cause for not presenting it within that period.
(6)An appeal to the Appellate Tribunalshall be in such form and shall be verified in such manner as may be specifiedby rules made in this behalf and shall, irrespective of the date of demand ofduty and interest or of levy of penalty in relation to which the appeal ismade, be accompanied by a fee of, -18
(a)where the amount of duty and interest demanded and penaltylevied by any officer of customs in the case to which the appeal relates isfive lakh rupees or less, one thousand rupees;18
(b)where the amount of duty and interest demanded and penaltylevied by any officer of customs in the case to which the appeal relates ismore than five lakh rupees but not exceeding fifty lakh rupees, five thousandrupees;18
(c)where the amount of duty and interest demanded and penaltylevied by any officer of customs in the case to which the appeal relates ismore than fifty lakh rupees, ten thousand rupees :18
Provided that no such fee shall be payable in the case of an appealreferred to in sub-section (2) or a memorandum of cross-objections referred toin sub-section (4).18
(7)Every application made before the Appellate Tribunal, -
(a)in an appeal * * *19 for rectification of mistake or for any other purpose; or
(b)for restoration of an appeal or an application, shall be accompanied by a fee of five hundred rupees :
Provided that no such fee shall be payable in the case of an application filedby or on behalf of the Principal Commissioner ofCustoms or Commissioner of Customs20 under this sub-section.

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Frequently Asked Questions

What types of orders can be appealed to the Customs Appellate Tribunal under Section 129A of the Customs Act, 1962?

Section 129A allows appeals against orders passed by the Principal Commissioner or Commissioner of Customs as an adjudicating authority, orders passed by the Commissioner (Appeals) under Section 128A, orders passed by the Board or Appellate Commissioner under Section 128 (as it stood before the appointed day), and orders passed by the Board or Principal Commissioner/Commissioner under Section 130 (as it stood before the appointed day).

Are there any exceptions to appealing to the Appellate Tribunal against orders passed by the Commissioner (Appeals) under Section 128A?

Yes, the first proviso to Section 129A(1) specifies that no appeal lies to the Appellate Tribunal if the order relates to goods imported or exported as baggage, goods loaded for importation but not unloaded at their destination, or payment of drawback under Chapter X and related rules. Additionally, the Appellate Tribunal can refuse to admit appeals where the value of confiscated goods, disputed duty, or the amount of fine/penalty does not exceed ₹2,00,000, unless the case involves the rate of duty or valuation of goods.

Can the Customs department appeal an order passed by the Commissioner (Appeals)?

Yes, Section 129A(2) allows a Committee of Commissioners of Customs to direct a proper officer to appeal to the Appellate Tribunal if they believe an order passed by the Commissioner (Appeals) under Section 128A is not legal or proper. If the committee members disagree, the matter is referred to the jurisdictional Principal Chief Commissioner/Chief Commissioner of Customs for a final decision.

What is the procedure when the Committee of Commissioners of Customs differ on whether to appeal an order of the Commissioner (Appeals)?

According to the proviso to Section 129A(2), if the Committee of Principal Commissioners or Commissioners of Customs differs in opinion regarding an appeal against the order of the Commissioner (Appeals), they must state their points of disagreement and refer the matter to the jurisdictional Principal Chief Commissioner or Chief Commissioner of Customs. The Chief Commissioner then decides whether to direct the proper officer to appeal to the Appellate Tribunal.

What happened to appeals pending before the Appellate Tribunal related to baggage, unloaded goods, and drawback before the Finance Act, 1984?

Section 129A(1A) states that appeals related to baggage, unloaded goods, and drawback, pending before the Appellate Tribunal before Section 40 of the Finance Act, 1984, were transferred to the Central Government. The Central Government handles these appeals under Section 129DD as if they were applications made under that section.

Does Section 129A of the Customs Act, 1962 empower the CBIC to constitute Committees?

Yes, Section 129A(1B) empowers the Board (CBIC) to constitute Committees, by order, as necessary for the purposes of the Customs Act. Each Committee consists of two Chief Commissioners of Customs or two Commissioners of Customs.

If a company is aggrieved by an order determining customs duty liability, what are the factors it should consider before appealing under Section 129A?

Before appealing under Section 129A, a company should assess the grounds for appeal, focusing on errors in law or facts in the original order. They should also calculate the financial impact of the disputed duty and consider the exceptions outlined in Section 129A(1), such as those related to baggage, unloaded goods or drawback, and also whether the disputed duty or fine/penalty exceeds ₹2,00,000 to determine if an appeal is viable.

Key Conditions & Requirements

ConditionDetails
Aggrieved person can appeal certain orders Any person aggrieved by specified orders passed by customs authorities (e.g., Principal Commissioner, Commissioner (Appeals)) may appeal to the Appellate Tribunal.
Orders related to baggage are generally not appealable No appeal lies to the Appellate Tribunal if the order relates to goods imported/exported as baggage, certain unloaded goods, or payment of drawback.
Discretion to refuse appeals based on low value The Appellate Tribunal may refuse to admit appeals where the value of confiscated goods, disputed duty, or fine/penalty does not exceed two lakh rupees, with certain exceptions.
Time limit for filing appeals Appeals must be filed within three months from the date the order being appealed against is communicated to the relevant party.
Cross-objections filing deadline The party against whom the appeal has been preferred can file a memorandum of cross-objections within forty-five days of receiving the appeal notice.
Committee of Commissioners can direct appeal A Committee of Commissioners of Customs may direct a proper officer to appeal to the Appellate Tribunal if it believes an order is not legal or proper.
Procedure when Commissioners disagree on appeal If the Committee of Commissioners disagrees on appealing an order, the matter is referred to the jurisdictional Chief Commissioner for a final decision.

Amendment History

123456789+11 moreSuperscript numbers in the text mark amended passages — click them to jump here. Click "↑ view in text" to jump back.
1
2014↑ view in text

Substituted (w.e.f. 6-8-2014) for the words"Commissioner of Customs" by s. 78 of the Finance (No.2) Act, 2014 (25 of 2014).

2
1995↑ view in text

Substituted by the Finance Act, 1995 (22 of 1995), section 50, for "Collector (Appeals)"(w.e.f. 26.05.1995).

3
1995↑ view in text

Substituted by s. 50 of the Finance Act, 1995 (22 of 1995) (w.e.f. 26.05.1995).

4
2014↑ view in text

Substituted by the Finance (No. 2) Act, 2014 (25 of 2014), section 78, for "Commissioner ofCustoms" (w.e.f. 06.08.2014). Earlier the words "Commissioner of Customs" weresubstituted by Act 22 of 1995, section 50, for the words "Collector of Customs"(w.e.f. 26.05.1995).

5
1984↑ view in text

Substituted by the Finance Act, 1984 (21 of 1984), section 40(a), for "Provided that"(w.e.f. 11.05.1984).

6
2014↑ view in text

Substituted by the Finance (No. 2) Act, 2014 (25 of 2014), section 86(i), for "fifty thousandrupees" (w.e.f. 06.08.2014). Earlier the words "fifty thousand rupees" weresubstituted by Act 38 of 1993, section 43(1)(a), for the words "ten thousandrupees" (w.e.f. 13.05.1993).

7
1984↑ view in text

Inserted by the Finance Act, 1984 (21 of 1984), section 40(b) (w.e.f. 11.05.1984).

8
2005↑ view in text

Inserted by the Finance Act, 2005 (18 of 2005), section 70(a) (w.e.f. 13.05.2005).

9
2014↑ view in text

Substituted by the Finance (No.2) Act, 2014 (25 of 2014), section 86(ii), for "by notification inthe Official Gazette" (w.e.f. 06.08.2014).

10
2005↑ view in text

Substituted by the Finance Act, 2005 (18 of 2005), section 70(b)(i), for "The Commissionerof Customs may, if he is" (w.e.f. 13.05.2005).

11
2014↑ view in text

Substituted by the Finance (No. 2) Act, 2014 (25 of 2014), section 78, for "Commissioner ofCustoms" (w.e.f. 06.08.2014). Earlier the words "Commissioner of Customs" weresubstituted by Act 22 of 1995, section 50, for the words "Collector of Customs"(w.e.f. 26.05.1995).

12
1995↑ view in text

Substituted by the Finance Act, 1995 (22 of 1995), section 50, for "Collector (Appeals)"(w.e.f. 26.05.1995).

13
2005↑ view in text

Substituted by the Finance Act, 2005 (18 of 2005), section 70(b)(ii), for "on his behalf"(w.e.f. 13.05.2005). *Sub-section (2) was earlier substituted by Act 62 of 1986, section 34(b)(i).Act 62 of 1986 has been repealed by Act 25 of 2014, section 2 and Schedule(w.e.f. 21.12.2004).

14
2008↑ view in text

Inserted by the Finance Act, 2008 (18 of 2008), section 71 (w.e.f. 10.05.2008).

15
2014↑ view in text

Substituted by the Finance (No.2) Act, 2014 (25 of 2014), section 78, for "Commissioners ofCustoms" (w.e.f. 06.08.2014).

16
2014↑ view in text

Substituted by the Finance (No.2) Act, 2014 (25 of 2014), section 78, for "Chief Commissioner ofCustoms" (w.e.f. 06.08.2014).

17
2014↑ view in text

Substituted by the Finance (No.2) Act, 2014 (25 of 2014), section 78, for "Commissioner ofCustoms" (w.e.f. 06.08.2014). Earlier the words "Commissioner of Customs" weresubstituted by Act 22 of 1995, section 50, for the words "Collector (Appeals)"(w.e.f. 26.05.1995).

18
2004↑ view in text

Substituted by the Finance (No.2) Act, 2004 (23 of 2004), section 69, for sub-section (6) (w.e.f.01.11.2004). Earlier sub-section (6) was substituted by Act 38 of 1993, section43(1)(b) (w.e.f. 13.05.1993). Sub-section (6), before substitution by Act 23 of2004, stood as under: "(6) An appeal to the Appellate Tribunal shall be in such form andshall be verified in such manner as may be specified by rules made in thisbehalf and shall, in the case of an appeal made on or after the 1st day ofJune, 1993, irrespective of the date of demand of duty and interest or of levyof penalty in relation to which the appeal is made, be accompanied by a fee of,- (a) where the amount of duty and interest demanded and penaltylevied by any officer of customs in the case to which the appeal relates is onelakh rupees or less, two thousand rupees; (b) where the amount of duty and interest demanded and penaltylevied by any officer of customs in the case to which the appeal relates ismore than one lakh rupees, one thousand rupees: Provided that no such fee shall be payable in the case of an appeal referred toin sub-section (2) or a memorandum of cross objections referred to insub-section (4)."

19
2014↑ view in text

The words "for grant of stay or" omitted by the Finance (No.2) Act, 2014 (25 of 2014), section86(iii) (w.e.f. 06.08.2014).

20
2014↑ view in text

Substituted by the Finance (No.2) Act, 2014 (25 of 2014), section 78, for "Commissioner ofCustoms" (w.e.f. 06.08.2014).

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