Customs Act, 1962 Section 131b — Transfer of certain pending proceedings and transitional provisions

Type Section

Legislation Customs Act, 1962

Amendments 1

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Plain-English Explanation

Plain English Summary

Overview

Section 131B of the Customs Act, 1962 provides for the transfer of pending proceedings from the Central Board of Indirect Taxes and Customs (CBIC), the Central Government, and Commissioners to the Customs Appellate Tribunal (CESTAT) due to legislative changes. It also addresses transitional arrangements to ensure the smooth continuation of these cases. This section ensures that appeals and proceedings do not get stalled due to changes in the law and clarifies who has the authority to handle these matters.

Who Does This Apply To?

This section applies to:

Appellants who had appeals pending before the CBIC (section 128) and proceedings pending before the Central Government (section 131) and Commissioners (section 130) before the "appointed day" (the date the relevant amendments came into effect).
The CBIC (formerly known as the Board), the Central Government and the Principal Commissioners or Commissioners of Customs who were dealing with such cases.
The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), which inherits the transferred appeals and proceedings.
Individuals authorized to appear in pending proceedings.

How It Works

Here's a breakdown of how Section 131B functions:

Transfer of Appeals: Appeals pending before the CBIC under Section 128 as it stood before the appointed day, along with any related matters, are automatically transferred to the CESTAT on that day. The CESTAT continues the appeal from the stage it had reached before the transfer. The appellant has the right to request a re-hearing.
Transfer of Proceedings: Proceedings pending before the Central Government under Section 131, along with related matters, are transferred to the CESTAT. The CESTAT proceeds as if the matter were an appeal filed before it, continuing from the point where it was paused before transfer. The applicant/other party can demand a re-hearing.
Continuation of Certain Proceedings: Proceedings pending before the Board or the Principal Commissioner/Commissioner under Section 130 continue to be handled by them as if the amending substitution hadn't occurred.
Authorized Representatives: Individuals authorized to appear in transferred appeals or proceedings retain the right to represent their clients before the CESTAT, despite the provisions of Section 146A.

Important Conditions & Exceptions

Condition 1: The CESTAT may rehear a case if the appellant/applicant requests it.
Condition 2: The Central Government retains jurisdiction over certain proceedings under Section 131 if:
- The value of confiscated goods (without the option to pay a fine in lieu of confiscation) is involved.
- The difference in duty or the duty involved in a disputed case (excluding rate of duty or valuation disputes)
- The amount of fine or penalty
  all do not exceed ₹10,000.
Exception: Disputes related to the rate of duty or valuation of goods for assessment purposes always transfer to CESTAT, regardless of the duty amount involved.

Practical Example

ABC Importers had an appeal pending before the CBIC on 1st April 2024 (the "appointed day"). The appeal concerned the classification of imported machinery and involved a duty demand of ₹50,000. Following Section 131B, this appeal automatically transfers to the CESTAT on 1st April 2024. ABC Importers now has to pursue their case before the CESTAT. If ABC Importers wish, they can request the CESTAT to rehear the case from the start; otherwise, the CESTAT will continue from the stage where the CBIC left off. ABC Importers' authorized representative, who was previously representing them before the CBIC, is still authorized to represent them before the CESTAT.

Key Amendments

No major amendments since enactment.

(1)Every appeal which is pending immediately before the appointed day beforethe Board under section 128, as it stood immediately before that day, and anymatter arising out of or connected with such appeal and which is so pendingshall stand transferred on that day to the Appellate Tribunal and the AppellateTribunal may proceed with such appeal or matter from the stage at which it wason that day:

Provided that the appellant may demand that before proceeding further with thatappeal or matter, he may be re-heard.

(2)Every proceeding which is pending immediately before theappointed day before the Central Government under section 131, as it stoodimmediately before that day, and any matter arising out of or connected with suchproceeding and which is so pending shall stand transferred on that day to theAppellate Tribunal and the Appellate Tribunal may proceed with such proceedingor matter from the stage at which it was on that day as if such proceeding ormatter were an appeal filed before it :

Provided that if any such proceeding or matter relates to an order where -

(a)the value of the goods confiscated without option having been givento the owner of the goods to pay a fine in lieu of confiscation under section125; or

(b)in any disputed case, other than a case where the determination ofany question having a relation to the rate of duty of customs or to the valueof goods for purposes of assessment is in issue or is one of the points inissue, the difference in duty involved or the duty involved; or

(c)the amount of fine or penalty determined by such order, does not exceed ten thousand rupees, such proceeding or matter shall continueto be dealt with by the Central Government as if the said section 131 had not beensubstituted :

Provided further that the applicant or the other party may make a demand to theAppellate Tribunal that before proceeding further with that proceeding ormatter, he may be re-heard.

(3)Every proceeding which is pending immediately before theappointed day before the Board or the PrincipalCommissioner of Customs or Commissioner of Customs¹ under section 130, as itstood immediately before that day, and any matter arising out of or connectedwith such proceeding and which is so pending shall continue to be dealt with bythe Board or the Principal Commissioner of Customs orCommissioner of Customs¹, as the case may be, as if the said section had notbeen substituted. (4) Any person who immediately before the appointed day wasauthorised to appear in any appeal or proceeding transferred under sub-section(1) or sub-section (2) shall, notwithstanding anything contained in section146A, have the right to appear before the Appellate Tribunal in relation to suchappeal or proceeding.

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Frequently Asked Questions

What happens to appeals pending before the Board under Section 128 of the Customs Act, 1962, after the 'appointed day'?

As per Section 131B(1), all appeals pending before the Board under the old Section 128, along with related matters, are transferred to the Appellate Tribunal on the 'appointed day'. The Tribunal proceeds with the appeal from the stage it was at on that day. The appellant has the right to demand a re-hearing before further proceedings.

If a proceeding was pending before the Central Government under the old Section 131 of the Customs Act, 1962, what is its status now?

Section 131B(2) dictates that these proceedings, along with connected matters, are transferred to the Appellate Tribunal on the 'appointed day'. The Tribunal will handle it as if it were an appeal filed before it. However, if the matter relates to confiscation without option to pay a fine, involves a duty difference/duty involved, or a fine/penalty amount, not exceeding ten thousand rupees, it remains with the Central Government.

What happens to proceedings pending before the Board or Commissioner of Customs under the old Section 130 of the Customs Act, 1962?

According to Section 131B(3), proceedings pending before the Board or the Principal Commissioner/Commissioner of Customs under the old Section 130, along with related matters, will continue to be dealt with by the respective authority as if the amendment to the section had not occurred. These proceedings are *not* transferred.

In cases transferred to the Appellate Tribunal under Section 131B(1) or (2), can the original authorized representative still appear?

Yes. Section 131B(4) explicitly states that anyone authorized to appear in a transferred appeal or proceeding before the 'appointed day' retains the right to appear before the Appellate Tribunal, notwithstanding anything contrary in Section 146A of the Customs Act, 1962.

What is the significance of the 'appointed day' in the context of Section 131B of the Customs Act, 1962?

The 'appointed day' serves as the cut-off for determining which cases are transferred to the Appellate Tribunal. It's the date on which the amendments to Sections 128, 130 and 131 of the Customs Act, 1962 came into effect, triggering the transfer of pending proceedings under Section 131B. The exact date is defined by the government notification that brought the amendments into force.

Is there a time limit to request a re-hearing before the Appellate Tribunal for cases transferred under Section 131B(1) or (2)?

While Section 131B(1) and (2) provides the appellant or applicant the *right* to demand a re-hearing, it does not prescribe a specific time limit. Generally, such requests should be made promptly and within a reasonable timeframe, and it is within the tribunal's power to accept or reject a delayed request for re-hearing. Legal counsel should be consulted immediately to adhere to the practices of a specific Appellate Tribunal.

Does Section 131B alter penalties associated with the original proceedings if they are transferred to the Appellate Tribunal?

No, Section 131B primarily deals with the *transfer* of pending proceedings and related transitional provisions. The penalties applicable to the original proceedings remain unchanged; the Appellate Tribunal will consider the case based on the laws and rules in effect at the time the original order was passed. The section does not grant the tribunal any new power to change the penalties under appeal.

Key Conditions & Requirements

Condition	Details
Appeals pending before the Board transfer to Tribunal	Appeals pending before the Board under old Section 128 are transferred to the Appellate Tribunal on the appointed day.
Right to be re-heard in transferred appeals	The appellant in a transferred appeal can demand to be re-heard by the Appellate Tribunal.
Proceedings pending before Central Government transfer to Tribunal	Proceedings pending before the Central Government under old Section 131 are transferred to the Appellate Tribunal.
Small value proceedings remain with Central Government	Proceedings involving confiscation without option to pay fine, duty differences, or fines/penalties not exceeding ₹10,000 remain with the Central Government.
Rehearing demand in transferred Central Government proceedings	Applicant or other party may demand rehearing by the Appellate Tribunal in transferred proceedings from Central Government.
Proceedings under Section 130 remain with Board/Commissioner	Proceedings pending before the Board or Commissioner under old Section 130 continue to be dealt with by them.
Authorized representatives can appear before Appellate Tribunal	Persons authorized to appear in transferred appeals/proceedings have the right to appear before the Appellate Tribunal.

Amendment History

1Superscript numbers in the text mark amended passages — click them to jump here. Click "↑ view in text" to jump back.

2014↑ view in text

Substituted by 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).