Revenue Challenge Fails on Jurisdiction of Order by Acting Commissioner

The dispute arose from an order in original dated July 25, 2023, passed by an officer who had been promoted as Commissioner of Customs on an “in situ” basis pending formal posting. The assessee challenged the order before the CESTAT under Section 129A, which allowed the appeal.

The Revenue objected to this approach, contending that since another commissioner was already in charge at Kandla, the officer who passed the order could not be treated as a Commissioner in law. According to the department, the order ought to have been challenged before the commissioner (appeals) under Section 128A. The objection was raised belatedly, including through a rectification application before the Tribunal, which also came to be rejected.

Issue Before Court: Whether an Order in Original passed by an officer promoted as Commissioner on an in-situ basis is appealable before CESTAT under Section 129A or before Commissioner (Appeals) under Section 128A.

HC Decided: The High Court upheld the Tribunal’s view and dismissed the Revenue’s appeal. It held that once the officer was promoted as Commissioner and directed to assume charge on an in-situ basis, he was competent to act in that capacity and pass adjudication orders.

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