Summary
The Supreme Court (SC) has opined that a dispute regarding exemption cannot be equated with dispute in relation to rate of duty. These are distinct and mutually exclusive. The SC has upheld the view of Kerala High Court (HC) that the principal issue in given case is determining whether the vessel is a foreign going vessel (FGV) or not and it is not in relation to rate of duty. The SC observed that the appeal is maintainable before the HC since it pertains to availability of exemption and hence, agreed with the view taken by the HC.
Our comments
In the present case, the petitioner has misinterpreted the issue of exemption with rate of duty. However, both disputes are mutually exclusive and different. Accordingly, the Supreme Court in this ruling approbated the view of High Court that appeal filed in relation to exemption shall be entertained by High Court. If the dispute relates to rate of duty, then appeal shall lie before the Supreme Court.
It is pertinent to note that the question relating to rate of duty is specifically excluded for preferring appeal at High Court under the Customs law and same shall lie before the Supreme Court.
Similarly, the Apex Court in case of Motorola India Limited and Madras High Court in case of BMW India Private Limited had held that appeals having question related to the rate of duty or value of goods for the purpose of assessment would only lie before the Supreme Court and rest all cases shall lie before High Court. However, it is interesting to note that such an exception related to filing of appeal in relation to the rate of duty or value of goods before High Court is not provided under the Goods and Services Tax (GST) regime.
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