Investigation Report Is Not An Appealable Order; No Statutory Right For Hearing At Stage Of Preparation Of Investigation Report: CESTAT

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that investigation report is not an appealable order and there is no statutory right for a hearing at the stage of preparation of investigation report. The Bench of P. Dinesha (Judicial Member) and M. Ajit Kumar (Technical Member) has observed that “the assessee has also not demonstrated any real prejudice caused to them by the investigation report. Merely being disappointed or dissatisfied is not enough”. In this case, the assessees/appellants are manufacturers of automobile passenger cars in India. The assessee regularly imports various automobile components, parts, assemblies and sub-assemblies from overseas countries. The assessee submitted that the Special Valuation Branch (SVB), of the Custom House, has issued an Investigation Report (IR) regarding the related party imports made by them. The assessee requested SVB to re-examine the IR. A letter was issued by the Additional Commissioner, SVB, to them, stating that there is no provision for re-examination of the IR. Aggrieved by the said letter they filed an appeal before the Commissioner (Appeals). The said Authority held that the IR is not an appealable order as per the Customs Act and rejected their appeal. The bench opined that the IR is administrative and fact finding in nature as it does not purport to decide the lis or contest between the contending parties by a statutory authority. A person who joins the inquiry and who assists or is questioned or submits documents and other proof in a dispute that is of assistance in reaching a conclusion on the matter being inquired into, cannot have a grievance that he was not given a personal hearing before finalizing the report. The Tribunal stated that “the assessee has also not demonstrated any real prejudice caused to them by the investigation report. Merely being disappointed or dissatisfied is not enough. Further the IR is the product of a consultative process between the department and the assessee as the facts are known only to the assessee. It is a compilation of evidence gathered, and subjective conclusions reached by the investigators. The assessee had ample opportunity to put forward his views orally and in writing.” The assessee has a fair chance to represent his case including assailing the investigation report, which is not binding on the Original Authority while deciding the lis and if he is still aggrieved by the final decision, the assessee can take up the matter in further appeal as provided in the statute, added the bench. In view of the above, the Tribunal dismissed the appeal. Case Title: Hyundai Motor India Ltd. v. Commissioner of Customs Case Number: Customs Appeal No.40501 of 2024 Counsel for Appellant/ Assessee: M. Manickam Counsel for Respondent/ Department: S. Subramaniam Click Here To Read/Download The Order

Investigation Report Is Not An Appealable Order; No Statutory Right For Hearing At Stage Of Preparation Of Investigation Report: CESTAT

Mehak Dhiman

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