 bid <no; 132 of 1986 the customs and excise revenues appellate tribunal bill, 1986 - arrangement of clauses chapter i preliminaryclauses 1 short title, extent and commencement 2 definitions  chapter ii establishment of nie appellate l'rmunal and benches thereof3 establishment of the appellate tribunal 4 composition of the appellate tribunal and benches thereof 5 qualifications for appointment as president or member 6 appointment of president and members - 7 member to act as president or to discharge his functions in certain circumstances 8 term of office   9 resignation and removal 10 salaries and allowances and other terms and conditiom of ~ervice of pl'esident and other members 11 provision as to the holdfug of offices by president and members on ceasing to be such presicient or member 12 financial and administrative powers of president· 13 staff of the appellate tribunal  chapter iii juihsdiction, powers and authority of 'qie ,appellate tribunal14 jurjsdiction, powers and authority of the appellate tribunal 15 bar of jurisdiction of the appellate tribunal in certain cases (i) 1  power to punish for contempt 17 distribution of business amonlst the appellate tribunal add itl beadles  chapter iv pilocedufte18 appeals to the appellate tribunal 19 procedure and powers of the appellate tribunal 20 deposit pending appeal, of duty demanded or penalty levied 21 richt of applicant to take assistance of legal practitioner and government to appoint representine otbcers 22, conditions as to making of interim orders 2'3 power of president to transfer ca'ses from one bench to another  24: procedure for deciding the case where the members of a bench difter in opinion 25 orders of the appellate tribunal  chapter v miscellaneous~6 ex'closion of jurisdiction of courts, etc, except the su'preme court 27 tra1\sfv of pending cases 28 pro('~dings before the appellate "rribunal to be judicial proceedin, 29 members and staft' of the appellate tribunal to be public servalits 30 pr~tion of action taken in  faith 31 act to have o'(l'erriciing effect 32 power to make rules 33 power to remove ditliculttes 34 cd~quential amendments in the e!entra1 :8xcises ad and the custljmlt act  bill, 1986 a bill\ to provide for the adjudication, by an appellate tribwai, of 8isputeb taw& 'fe8pect to the cutermination of the nrtes of duder c1f customb ad central excise on goods ancl to the valuation of goods for the pzl7'-1'0_8 of cib8~'"""t of sttch duties, in punucnce of fij'tiele cj2sb oj the constitution and for mdtters connected thertiru:ltth or itl~lil thereto bii it enacted by parliament in the thirty-seve1th year ot the republic of india as follows:- chapter i pftlkimin ally5 1 (1) this act may be called the customs and ebceise r~ agrt appellate tribunal act, 1986 tuie, cildqt  "(:) it extends to the whole of india r -at (3) it aball come into ~ on such date as the central g~liitl1t may, by notification in the oftkial gazette appoint 10 2 in this act, unless the context otherwise requircs,-(a) uappellata tribunal" means the culltoms _ ~ ~ appellate tribunal cmlst!tuteti tmder seetion 3; (b) "appointed day" means the date with effect from which the appel1ate 'n-iduna! is establjsned, by' netlncation, under section 3; (c) "bench" means a bench of the appellate tribunal; (d) "board" means the central hoard of excise and customs mot lt68 constlluted unuer the central !ioarus 01 rtevenue act, iij03; 5 1 of 1944 5 of 1986 (e) "central excises acc' means the central excises and salt act, 11144;  __  ___ - <f) "central excise tariff act" means the central excise tariff a~l~;, (g) "customs act"' mea11s the customs act, 1962; 10 s2ofl962 (h) 'customs, 1:xclse and gold lcontrol) appeilate tribunal" means th\: customs, i!ixc1se and gold {l:ontrol) a,ljp~llate 'l'nbunal constituted under section 12~ of the customs act; (i) "customs 'fari11 act' means the customs tariff act, 197a 51 of 1975 {]) "juuiclal member"' means a membel' of the appellate l'ribu- 15 nal appointed as such under this act, and includes the president who poss~::,,"ses any or tne (!uallnca uons specltied in suo-section (2) of section 5; (k) "member" means a member (whether judicial or technical) of the appellate tribunal and includes the president; 20 (l) "notliication' means a no1it1catlon published in the official gazette; •  _i , , -1 '{in} ';president" means the president of the appellate tribunal;  :   (n) "prescribed" means prescribed by rules; (0) "rules" means rules made under this act; (p) "supreme court" means the supreme court of india; (q) "technical member" means a member of the appellate tribunal who is not a judicial member within the meaning of clause (;) ;  (r) words and expressions used in this act but not defined 30 ',~ ~d 'defined· in the central excises act, central excise taruf "ct, customs act or customs tariff act, or the rules made thereunder, shall have the meanings respectively assigned to them by' such act or the rules made thereunder  chapter ii establishment of the appellate trlbvnal and benches thereof3 th" central goverddlent silalj, by notification, esta~~~ appellate tribunal to be known as the customs and excise ~appel1at  tilbunal, to -exercise the jurisdictjon, powers and authority coalerred on such appellate tribunal by or under this act establish· meat of the· appel la1e'" ltriwdal  4 (1) the appellate tribunal ihall consist' of a presldellt aad sucb muaber· of judieial and teehnical membel'l as the ceatnl·gtw-ment may deem fit, anti subject to tho· 0"'-provisiods of this· act, ·the j1ljill-diction, powers and authority of the appellate tribunal may be exer- '~ ,', p"r:' ~\'7'~ co1l1pllitionotthe appellate tribunal add·lia-cised by benches thereof    45 cbe~·re­of ~' \,  (!~ "a, :ben:~h' shallconaist of one  judicial mehiber' and· oile technical member  " -' ··t  (3) notwithstanding anything contained in sub-section (1), the preil dent-:_ i~i (4) may, in addition to discharging the functions of the judicial member or the technical member of the bench to which he is ap-s pointed, discharge the functions of the judicial member or, as the case may be, the technical member, of any other bench; (b) may transfer a member from one bench to another bench; and , > j;;  '" - (c) may authorise the judicial member or the technical memlu ber appointed to one bench to discharge also the functions of the judicial member or the technical member, as the case may be, of another bench -'  (4) notwithstanding anything contained in the foregoing provisions of this section, it shall be competent for the president or any other mem-15 ber authorised by the, president in this behalf to function aa a bench consisting of a single member and exercise the jurisdiction powers and authorit,:/ of the appellate tribunal in respect of such classes of cases or such matters pertaining to such classes of cases as the president may by general or special order specify: 20 provided that if at any stage of the hearing of any such case or matter it appears to the president or member that the case or matter is of such a nature that it ought to be heard by a bench consisting of two members the case or matter may be transferred by the president or, as the case may be, referred to him for transfer to, such bench as the preeident !z5 may deem fit ,  i (5) subject to the other provisions of this act, the benches of the appellate tribunal shall ordinarily sit at new delhi aad at such other places as the president may deem fit 5 (1) a person shall not be qualified for appointment as the presl-30 dent unless he-(a) is, or hal been, a judge of a high court; or ~ualj4ca· tiodi for appoidt· midt  preiidiat or  mr (b) has, for at least two years, held the oftlce' of a judicial member or a technical member (2) a person shall not be qualified for appointment as a judicial 35 member unless h e -   i (4) is or has been, or i8 qualified to be, a judge of a hish court; or i (b) has been a member of the indian legal service and hu held a post in grade i of that service or any equivalent or higher post for at least five years  (s) a person shall not be qualified for appointment as a techdical member unless he has been a member of the indian customs and· central excise service, group 'a', for a period of at least thirty years, and baa held during thll period the post of collector of customs or central 45 excise or any equivalent or higher post for at least ten years 6 (1) subject to the provisions of sub-section (2), the president and every member shall be appointed by the president of india appoint-ideiil of ptelident add --litn (2) appointment of a person as the president or a member shall be made in consultation with a selection committee consisting of-(4) a chairman who shall be nominated by the chief justice 5 of india; and (b) such other members as may be nominated by the central government member foactu presldellt 7 (1) in the event of the occurrence of any vacancy in the office of the president by reason of his death, resignation or otherwise, such one of 10 the members as the central government may, by notification, authorise in this behalf, shall act as the president until the date on which a new president, appointed in accordance with the provisions of this act to fill such vacancy enters upon his office 01' 10 eli&-dwjo his fmjctioas fd certain circumttances (2) when the president is unable to discharge his functions owing to 15 absence, illness or any other cause, such one of the members as the central government may, by notification, authorise in this behalf, shall discharge the functions of the president until the date on which the president resumes his duties todd of omee 8 the president or other member shall hold office as such for a 20 tenn of three years from the date on which he enters upon his office or 1:lntil he attains the age of sixty-five years, whichever is earlier   don 9 (1) rrhe president or other member may, by notice in writing aad under his hand addressed to the president of india, resign his office: i'0i80\'&1 provided that the president or other member shall, unless he is 115 permitted by the president of india to relinquish his office sooner, continue to hold oftice until the expiry of three months from the date of receipt of such notice or until a person duly appointed as his successor enters upon his office or until the expii-y of his term of oftlce, whichever is the earliest go (2) the president or any other :member aball not be removed from his oftice except by 8q order made by the president of india on the ground of proved misbehaviour or incapacity after an inquiry made by a judge ot the supreme court in which such president or other member had heed informed of the charges alaidst him and given a reasonable oppor- 35 tuntty of being heard in respect of those charges (3) the central government may, by rules, regulate the procedure for the investigation of misbehaviour or incapacity of the president or other member referred to in sub-section (2) 10 the salaries and allowances payable to, and the! otbel tenus aud 5 conclltiods of servic-,e (including pension, li'atuity and other retirement bene8ts) of, the president and otber members shall be such as may be' prescribed by the central government: provided that neither the salary and allowances nor the other terms ancj conditions of service of the president or otbetr member shall be varied 10 to his disadvantage after his appointment salariii andalln'-f:dceiadd otber terma add c::oadfdoaa ofterv1ce of pfeii, dodt adci other memben 11 on ceasing to hold oftice,-pro1'llloa  to die boidfdi of (a) the president shall be ineligible for further employment either under the government of india or under the government of a state; 15 (b) a member (other than the president) shall, subject to the other provisions of this act, be eligible for appointment es the presi· dent, but not for any employment either under the government of india or under the government of a state; oftlces '" praldeul 8iid m  bert  ceulngto be iuch predclelll or menlber (c) the presiglent or other member shall not appear, act or plead 20 before the appellate tribunal or the customs, excise and gold (control) appellate tribunal explanation-for the purposes of this section, employment under the government of india or under the government of a state includes employment under any local or other authority within the territory of 25 india or under the control of the government of india or under any corporation or society owned or controlled by the government 12 the president shall exercise such financial and administrative )lowers over the benches as may be vested in him under the rules: finadcial ajldaclmbt-!lie pnifdem provided that the president shall have authority to delegate such of 30 his financial and administratjive powers as he may think flt to any member or officer of the appellate tribunal, subject to the condition that the member or such officer shall, while exercising such delegated powers, continue to act under the direction, control and supervision of the president 35 13 (1) the central govel'nment shall determine the nature and categories of the officers and other employees required to a~ist the' ap )ellate tribunal in the discharge of its functions and provide the appellate tribunal with ~uch officers and other employees as it dlay think fit (2) the officers and other employees of the appellate tribunal shall 4° discharge their functions under the general superinfendence of the president (3) the salarie  and allowlulces and conditions of sen'ice of the officers and other employees of the appellate tribunal shall he such as may he specified "by rules  chapter iii jl7jwjdictlon~ powers and authority of the ,appellate 'l'r!8vn,ali' (1) save as otherwise expressly provided in this act, the appellate tribunal shall exercise, ~)n and from the appointed day all the jurisdictiod, powers and authority exercisable in relation to an appeal against-(a) a decision or order passed by the collector of central excise 5 as an adjudicating authority; jiiriidiotjod po-r andautgo rlt)' cjf u- appellate 'niblmal (b) an order passed by the collector (appeals) under section 35a or section 35e of the central excises act; (c) a deelsion or order passed by the collector of customs as an adjudicating authority; 10 (d) an order passed by the collector (appeals) under section 128a or section 129d of the customs act, in which the determination of any question having a relation to-(i) the rate of duty of excise for the time being in force, whether under the central excise tariff act or under any other central act 15 poviding for the levy and collection of any duty of excise, in relation to any goods on or after tlie 28th day of february, 1986; or (ii) the rate of duty of customs for the time being in force, whether under the customs tariff 'act or under any other central act providing for the levy and collection of any duty of customs; in 20 relation to any goods on or after the 28th day of february, 1986; or (iii) the value of goods for purposes of assessment of any duty of excise in cases where the assessment is made on or after thp 28th day of february, 1986; or 25 (iv) the value of goods for the purposes of assessmpnt of any duty of customs in cases where the assessment is made on or afther the 28th day of february, 1986 is in issue or is one of the points in issue explanation-fo'i' purposes of this sub-section, the determination of 30 a rate of duty in relation to any goods or valuation of any goods for the purposes of assessment of duty includes the determination of a question-(4) whether any ~oods are excisable goods or whether the tate of duty on any -goods is· nil; 35 -59 of 157 (b) whether anv fi(oods fall under a particular beartint£ or subheading: of the schedule to the central excise tariff act or the additional duties of excise (goods of snecial importance) act 1957 or the ad"'itional dutips of exeifle (textiles and textile articles) act, 1978 or fall under the first schedule or the secon~ ~chedt1le to the 40 _ 40 of 1978 cuatoma tarift act, as the case may be, or that any goods are or not covered by a particular notification or order issued by the centrial government or the board, granting total or parteal exemption from a duty of excise or customs, as the case may be; 5 (c) whether the value of any goods for the purposes of assessment of a duty of excise or customs shall be enhanced or reduced by the addition or reduction of the amounts in respect of such matters as are specifically provided in the central excises act or the customs act 10 (2) for the removal of doubts, it is hereby declared that nothing in sub-section (1) shall preclude the entertainment of an appeal in relation to any of the matters dealt with in subsection (1) by the customs, excise and gold (control) appellate tribunal or the disposal thereof during the period commencing on and from the 28th day of february, 15 1986 and ending with the appointed day and any order passed by the said tribunal on such appeal during that period shall, for all purposes, have effect as an order of the appellafe tribunal constituted under this act and all the provisions of this act shall apply to such order 15 notwithstanding anything contained in section 14, no appeal shall go lie to the appellate tribunal and the appellate tribunal shall not have jurisdiction to decide any appeal in respect of any decision or order referred to in section 14 if such decision or order relates only to,-| bar           | of      ||---------------|---------|| juriadictioll |         || oftbe         |         || appellte     |         || tribunal      |         || in            | certaja || cases,        |         |(a)  a case of loss of goods, where the loss occurs in transit from a factory to a warehouse or to another factory, or from one warehouse fil5 to another, or during the course of processing of the goods in a warehouse or in storage, whether in a tactory or in a warehouse; (b) a rebate of duty of excise on goods exported to any country or territory outside india or on excisable materials used in the manu· facture of goods which are exported to any country or territory out-30 lide india; (c) goods exported outside india (exeept to nepal or bhutan) without payment of duty; (d) any goods imported or exported u baggage or by post; (e) any goods loaded, or deemed to have been loaded in accor--55 c:1ance with an import manifelt or import report, in a conveyance fot importation into india, but which are dot unloaded at their place of destination in india, or so much of the qu8dtity of such goock'al has not· been unloaded at any such destination if goods unloaded at such destination are short of the quantity required to be unloaded 40 at that d  t1dation or any ,oods which have been lost or destroyed after hein, unloaded at any such destination; (f) payment of drawback as provided in chapter x of the customs act and the rules mad thereunder 18 the appellate tribunal shall have and exercise, the same juris-power to  5 diction, powers and authority 'in respect of contempt of itself u a high puaiah for court ~ and may exercise, and, for this purpose, the provisions of the codtempt contempt oi' courts 'act, 19'ti shalf" have' i1f~(£ subject'to" theo'moatb'cations that--(a) the references therein to a high court shall be construed as il1eluding a reference to the appellate tribunal; (b) the'refer~ees to the advoeate-otmeralin' seetion 15 of'the 5 said act shall be construed, in' relatibu to the appellate triburtal,  as a reference to the attorney-general or the solicitor-genetat or the additional solicitor-general 11 (1) where any ben~hes of the appeua:te tribunal are' coiistt:tuted~ the president may, from'time to tbine, by otder, make provisions u toto the distribution of the business of the awellaie tribunal amongst the' benches and specify the'matters w'hlch niay be dealt with by each bench i distribution of business amongst the appellate tribunal and its benches (2) if any questionai1ses as to 'whether any' niatter' falls within 'the' purview of the business allocated to a bench of the appellate tribunal, 15 the decision of the ~esident thereon shall be tmat  cltapttr iv prbceiyuri 'appeals to the appellate tribunal 18 (1) subject to the other prbvision's of this act; every" ai)p~al' to the appellate tribunal under this act shall be flied wit'hlri th'ree"monlhs go from the date on which the decision a order sought to be appealed against is communicated to the person aggdeved by tlie decision or order or to the collector of central ,excise or the collector of customs, as the case may be (2) on receipt of notice that an appeal has been preferred' under 125 this section, the party against whom the appeal has been preferred may, notwithstanding that he may dot 'have' appealed 'againit 'sochotcier' or any part thereof, file within forty-five days of the re~eipt of the notice a m'~ri(fum'  of: cross::odje~drls )whfted in'  such nilinn~r as imay be speofied by rules lrtade' ill' th'rs:' ~ii'lf' agitinst any part of the' 6raer 30 api1eii~'~a~t 'and ~h"'ni~mohmm/shall be' di~';of'by' the a~ellatettifntntt1 as it it wf!te an' app~l' preijentet!' '\vttmb'the'dlne speclfte'd  in stib-s~ctfon: (l) (3) the appellate trfbtrttal'mlly aamtf ah app@lt'or"perititt"thcf1titbg of ,~ memo~andum of cross:~bjections after the exp~ of the relevant 35 penod referred to in suh-section (1) or sub-section (2), if'it' is satisfied that there was sufficient' cause lo:r not presenting it within that period (4')' every li})pet to"ttle' :a~el18w-'mlin:al shill 'l1e(in stleti fb'ml' , an! 'shim 'hi f whiled in i'f1~ip ~f!tr "at rhay btf~\f br,~ r\llei mas ¥ ~,~ b~' ~,:~" exceptin the c~seot an appeal preferred by ,~ prroftl~r dr : metuofan~;'9f ,cro~-p~jei;:m~ns referr~d to ~n sub-ection (2) ,be-accompanied by fee of two hull(tred rupees procedure and powers of the appellate tribunal 19 (1) the app~llate tribunal shall not be bound by the procedure 'of 1908 5 l~d down in tbe -coste of c~yilprocedure, 1908, but shall be guided by the principles of natural justice and s"bject to the other provisions of this act and of any rules made by the central government, the appella,te ~bunal shall h!lve power to regulate its own procedure, including ,the fixing ,of plac,t;s and times of its heat:ing , " _ r ,- " -  - ~ - ' ,_' 10 (2) the appellate tribunal shall have, for the purposes of discharg-,ing its !u~tio~s un~ ~~is !\ct, the same powers as are vested in a $ of 1908 civil court under the code of civil procedure, 1908, while trying a suit, in respect of the f~llowing matt~rs, namely:-(a) summoning and enforcing the attendance of any person and j5 examin~g him on oath; (b) requiring the discovery, inspection and production of books of account apd other doculflents; (c) reviewing its decisions; (d) dismissing an appeal for default or deciding it ex parte; and zoo where in any appeal under this act, the decision or order ~ppem­ed against relates to any duty demanded in respect of goods which are not ,9d_der ~e e cp~trol of, the, ~ntral exci~, authorities or the customs '1 ~utpr:ri~'-,:a&:t~e,~a~~~y)e, ?r ~ny,j~f1~lt',je:vjed under the central deposit, pending ,3ppt'ul, of duty dc· maoocd or penalty icvie(~·  q5!~~,ad,oratpe·eu~~ act"the peli5pll; daairollsof,4ppealillg against  such decision or order shall" pending the appeal,  deposit with the proper oftlcer the duty demanded or the penalty levied:  pi;qvided  that wbere in  any :particular ca~e,the r~ppellate t~ibunal is ,of opinion that· the, deposit of duty demanded or, penalty levied would 30 cause undue hardship to such person, the appellate tribunal may dis-,pense with such cifposit s\lbje~t to suchcondit,ions as it may' d~em fit to impose so as to ~~~d 'ij)e ,int~el$ts of re;venue, 21 (1) a person preferring an appeal to the appellate tribunal under this act may either appear in person or take the assistadce of a legal practitioner of his choice to present hi, case before the appeuaw tribunal (2) the central government may authorise one or mol'e legal!s pactitionen or any of its olllcen to act as presenting offtcer and anr person so authorised by it may present its case with respect to an)' appeal before the appellate tribunal lliiht of applicant to take  latadce of jea1 practitioner andgovernment to appoint representidi officer 22 notwithstanding anything contained in any other provisions of this act or in any other law for the time being in force, no interim order 10 (whether by way of injunction or stay or in any other manner) shall be made on, or in any proceedings relating to, an appeal under this act unless-cod-ditions as to makin, of mterim ordeiw (a) copies of such appeal and of all documents in support of the plea for &uch interim order are furnished to the party against whom i!) such appeal is preferred; and (b) opportunity is given to such party to be heard in the matter: provided that the appellate tribunal may dispense with the require--ments of clauses (a) and (b) and make an interim order as an e"cap tional measures if it is satisfied, for reasons to be recorded in writing, 20 that it is necessary so to do for preventing any loss being caused to the appellant which cannot be adequately compensated in money but any such interim order shall, if it is not sooner vacated cease to have effect on the expiry of a period of fourteen days from the date on which it is made unless the said requlrements have been complied with before the 25 expiry of that period and the appellate tribunal has continued the operation of the interim order 23 on the applil'ation of any of the parties and after notice to the parties, and after hearing such of them as he may desire to be heard, or on his own motion without such notice, the president may transfer any so case pending before one bench, for disposal, to any other bench, power of president to transfer cash from one bench to~ other 24 if the members of a bench differs in opinion on any point, they shall state the point or points on which they differ, and make a reference to the president who shall either 'hear the point or points himself or refer the case for hearing on such point or points by one or more of the 35 other members and such point or points shall be decided aceording to the opinion of the majority of the members who have heard the cue~ including those who fint heard it procedure tor decldin, the c:ase w~ the member or bench cwrer in opinion orders of appellate 'l"rlbu~j 25, (1) the app~llate tribunal may, after qiving the parties to the appeal, an opportunity of being heard, pass such orders thereon as it 40 thinks fit, confirming, moduytng or annulling the deelsiod or order appealed against or may refer the case back to the authority which passed such decision or orciej' with such directions as the appellate tribunal may think fit, ~or ~ fresh ~djudication or d~is~on, ~~ tbe case ~y be, after ~~g add!-tio~ evt~nce, !t nece~:  (2) the appellate trlbudal may, at any time within four years from the date of the order, with a view to rectifying any mistake apparent ,from the record ~ any order passed by it unc'er sub-section (1) and shall make such amendments if the mistake is brought to its notice 5 by the collector of central excise or the collector of customs, as the case may be, or the other party to the appeal: provided that an amendment which has the effect of enhancing the assessment or reducing a refund or otherwise increasing the liability of the other party shall not be made under this sub-section, unless the 10 appellate tribunal has given notice to him of its intention to do so and has allowed him a reasonable opportunity of being heard (3) the appellate tribunal shall send a copy of every order passed under this section to the collector of central excise or the collector of customs, as the case iilc1y be, and the other party to the appeal  15 chapter vmiscellaneous 28 on and from the appointed day, no court (except the supreme court) or the customs, excise and gold (control) appellate tribunal shall have, or be entitled to exercise, any jurisdiction, powers or autho-110 tity in relation to matters in respect of which appeals would lie to the appellate tribunal under section 14 exclusion of jurisdiction ot courts elocept the supreme court transfer ot pend inc cases 27 (1) every suit, appeal or other proceedings pending before any court or other authority or the customs, excise and gold (control) appellate tribunal immediately before the appointed day, being a suit, 125 appeal or other proceedings which would have been within the jurisoiction of the appellate trtbunal, if it had arisen after such 'day, shall stand transferred on that day to the appellate tribunal: provided that nothing in this sub-section shall apply to any appeal pending as aforesaid before a high court go (2) where any suit, appeal or other proceeding stands transferred from any court, tribunal or other authority to the appellate tribunal under sub-section '(1) ,-(4) the court or other authority or the customs, excise and gold (control) appellate tribunal shall, as soon as inay be after such s5 transfer, forwarcl the records of such suit, appeal or other proceeding to the app&uate tribunal; ed' (b) tile appellate tribunal may, on reeelpt of sueh records, proceed to deal with sueh suit, appeal or other proceeding, so far as may be in tho flame manner as in the case of an appeal under 40 sectiod 19 from the stage which was reaehed before such transfer or from any earlier stag or de novo as the appellate tribunal may deem at (3) any person, who imediately before the appointed day, is an advocate or authorised representative entitled to practice in any court 45 or ather authot'ity 01" the customs, exrjs" and gom (contol) apnellate trlbun9j anti was authorfsed to annear or to act in anv prorepdings transferre~ from the said 'court other authority or tribunal to the a~uat~ tribunal uqder this section shall have the right to appear or to act as· the ·cue may be, b,efore ~ -appellate ~ ,mrel  tltn to the a,id suit, app~al or ~herproeeeding z8 all proceedings before tbe appe~ tj'ihu~ : iib,,l!, qe ,,,d to be judicial procegngs ·witl1~n theul,8aning of ~ctiojjs 3~t ~jb and· 228 of the indian penal cocle proceedings before theappellate tribunal to be judicial proceeding 29 the president and other ~mbersand the qm~rs ,~d ,p~r employees of the appellate tribunal shall ,be deejxled ,to be·p\'~1tc servants within the meaning of section 21 of the indian penal code members and staff of tho appellate tribu-nal to be public servants 30 no suit, prosecution or other legal proceeding shall lit agalnst the central gove-rnment or against the president or other member, or any 10 other person authorised by such president or other member for anything which is in good faith done or intended to be done in pursuance of this act or any rule or order made thre~nder 31 the provisions of this act shan have effect notwithst;a,ndipg anything inconsistent therewith contained in any other law for the time 15 being in force or any instrument ha,vipg ~ffect by virtue of any law other than this act 32 (1) the central government -inay, by notification, make rules to carry out the provisions of this ~ct protection of action taken in tood faith act to have ovel'-riding effect power to make rules (2) without prejudice to the generality of the foregoing power, such 20 rules d1ay provide for all or any of the following matters, namely:-(a) the salaries and allowances and other ite~ms8l1d:cw~t~pi of servjc~ of president,aj)d other l\f~i»pers~11;lderseotiqn10; - {b)·; the~~cial and, ~"'i • twe p"y  -wwch: tae·~sident ,my-,qer_ over:thej~~s u~ _~ 12;~5 (e) the salaries and allowanou aaci;:cou:ltlonl of;wloeof the e1ft~  and otbar,~oyeea of· ~c~:::'jj1~"'m1a1c\lnder subseetion (3) of -beeiton 33; (d) the form in which every appeal to the appellate tribunal shall he filed and the manner in which such appeal shalt be verifie(hso  under sub-section (4) of ·section 18; and (e) any other matter vvhich has to be, or may be,' presrribed by rules under this act (3) every rule made under'this act by the cebtral ,goyftlliqtmt, ~ll l'li' laid as soon as may be after it is made, bef-olle·each h~,of~­rnent, while it is in session, for a total·period of thirtydays·whichy s~ be··~omppised'~ ode ~n, or mtwo or;m",,·§~qmitive··' __ r:~~ if before the expiry of the session inuhetlta~ly" fohow'fnr the' 'session 0; the successive sessions aforesaid, both houses agree in malting any l"1oamcluon"ui'"tne'rtile or botli houses agree that the rule should not be made, the rule shall thereafter have e«ect only in such modified 5 form or be of, do elfect, as 'the ease may' be; so, hbwever, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule 93 (1) if- ahy dift\~ulty" atises in giving effect to the provisions of this act, the central government may, by otder published in the official power to remove diffi culties 10 gazette, make such provisions, not inconsistent with the provisions of this act as appear to it to be detebsary or expedient for removing the difficult,: provtd~' 'that n'o slieh order shall be made after the expiry of a pel1od or three yeirs ffomthe appointed day 15 (2) every order made under this section shall, as soon as may be after it is made, be laid before each house of parliament 3i&: drl andfroni the appointed day, the, followingamendmellts (being amerldments of ,a consequential nature) s~all be made in the central excls~s" act and' the custorrts' act, namely:-20 (a) in 'the central excises act,-(i)' for sub-section (2) of section 35b, the following sub-sectlol1' shall' be slibstituted, namely:-"(2) the' couector of central excise may, if he is of opinion that an order passed by-con sequential amendmenta in the central excises act and the custoldj act !l5 (a) the appellate collector of central excise under section 35, as it stood immediately before the appointed day, or '5 (b) the collector (appeals) under section 35a; is not legal or proper, direct any central excise officer authorised by him in this behalf (hereafter in this chapter referred to as the authorised officer) to appeal on his behalf to the appellate tribunal or, as the case may be, the customs and excise revenues appellate tribunal established under section 3 of the customs and excise revenues appellate tribunal act, 1986, against such order"; (ii) in section 35e,-(a) after the words "appellate tribunal", wherever they occur, the words and figures "or, as the case may be the clmtoms and excise revenues appellate tribunal established under section 3 of the customs and excise revenues appellate tribunal act, 1986" shall be inserted; 45 (b) in 8ub·section (4), after the words, figures and letter "section 35b", the words and figyres "of, as the case may be, the provisions of the customs and excise revenues appellate tribunal act, 1986" ihall be inaerted; (i) for sub·section (2) of lection 129a, the fouowiua iu):, section shall be subsututed, namely:-"(2) the collector of cuatoma may if he is of opinion that an order passed by-5 (a) the appellate collector of customs under section 128, as it stood immediately before the appointed day, or (b) the collect~r (appeala) under section 128a, jl on his behalf to the appellate tribunal or, as the case may "(2) the collector of customs may if he of opinion 10 be, the customs and excise revenues appellate' tribu nal established under section 3 of the customs and excise revenues appellate tribunal act, 1986, against such order ,"; (ii) in section 129d,-15 (a) after the words "appellate tribunal", wherever they occur, the words and figures "or, as the case may be the customs and excise revenues appellafe tribunal established under section 3 of the customs and excise revenues appeuate tribunal act, 1986" shall be inserted; go (b) in sub-section (4), after the word, figures and letter "section 129", the words and figures "or, as the case may be, the provisions of the customs and excise revenues appellate tribunal act, 1986" shall be inserted article 323b of the constitutiun stipulates that the appropriate legislature may, by law, provide itt tne adjudication or trial by tribunajs ot any disputes, complamts, or oflentes with respect to all or any of the matters specified in clause (~) of that article with respect to which· such legislature has power to make laws one of the matters enumerated ill the laid clause is the levy as~es8ment, collection and enforcement of any tax including any matter incidental thereto 2 the bill seeks to give effect to the aforesaid constitutional provision by the establishment of an appellate tribunal to provide for the adjudication of disputes with respect to the determination of the ratea of duties of customs and central excise on goods and to the valuation of goodi for the purposes of abliesiment of iuch dutiei the bill alao provides for--- <a> the jurisdiction, powt'j"a and authority which may ,be exercised by the appellate 'lribunal; <b) the procedure (iududmg provision as to limitation and rulei of evidence) to be followed by the appellate tribunal; (c) exclusion ot the jurisdictlon of all courts, except that of the supreme court, relating to matters falling within the jurisdiction of the appellate tribunal; (d) the transfer to the appellate tribunal of any suit, appeal or other proceedings pendi!lg before any court, etc, immediately before the establishment of the tribunal which would have been within the jurisdiction of the tribunal if such suit, appeal or other proceedjnis had arisen after such establishment 3 the establishment of the appellate tribunal under the aforesaid provision ot the constitution has become necessary as in recent years there had been an enormoulj increase in litigation relating to custojllfi and excise cases many of these cases relate to disputes pertaining to the determination of the rate of duty and value of goods for purposes of levy of customs and excise duties, it is expected that the establiihment of the appellate tribunal will reduce litigation and will also impart greater ('ertainty in the administration of the said duties ~ the notes on clauses explain in defail the various provisions of the bill 5, the bill seeks to achieve the above objects new delhi; vishwanath pratap singh the 12th novem~r 1986 clause 2-this clause defules certain expressions occurring 1n th~ act clguh3-this clause provides for the establishment of the appellate tribunal clouse 4-this clause states what shall be' the organis3tion of the appellate tribunal, the composition of its benches and the manner in which the benches shall function - clause 5-this clause prascribes the qualifications for appointment as president, judicial member or technical member of the appellate 'tribunal clause 6--":this clause prescribes the manner in which the president :md members of the appellate tribunal shall be appointed clause 7-this clause p~'ovides for the discharge of the president's functions in the contingency when the president is unable to discharge ;!is functions or the office of the president is vacant clause 8-this clause fixes the tenure of the president or other mem-"1'5 of the appellate tribunal subject to a maximum age-limit -clause 9-this clause details the procedure for resignation or re-noval of the president or oth2r members of the appellate tribunal clauge 10-this clause provides for the framing of rules by the central government to regulate the salaries and allowances and other conditions oj: service of president and other members clause ·h-this clause states the position as to further employmen of the president and membpts on their ceasing to hold office as such clause 12--this clause provides for the president to exercise financial and administrative powers and for delegation of such powers clause is-this clause provides that the central government shall provide tbe stat! for the functioning of the appellate tribunal cia •• 14-this clause defines the jurisdiction, powers and authority of the appellate tribunal clause 15-this clause provides for bar of the jurisdiction of the appellate tribunal' in certain cases  clause 16-this clause vests the appellate tribunai- with powers to punish for contempt of itself as a high court clause 17-this clause provides for appropriate :jrovislons being made by the president for distribution of business amongst the appellate tribunal and its benches clause 18-this clause provide; for the procedure for preferring appeal to the appellate tribunal clause 19-this clause provides that the appellate tribunal shall have the power to regulate its own procedure subject to the other provisions of this act or of any rules made by the central government it also invests the appellate tribunal with powers of aaivi! court in respect of certain specified matters clause 20-this clause provides for the amount demanded as duty or imposed as penalty in a dispute being deposited pending appeal; and also for deposit being dispensed within certain circumstances clause 21-this clause provides for the aggrieved person taking the assistance of a legal practitioner and the central government presenting its case through one or more persons whether legal practitioners or not  clause 22-this clause empowers the appellate tribunal to make interim order~ subject to certain conditions clause 23-this clause defines the powers of the president to transfer cases pending hefore one bench to any other bench for disposal clause 24-this clause prescribes the procedure to be followed for deciding a case where the members of a bench differ in opinion clause 25-thlf; clause indicates in what manner orders may be passed by the appellate tribunal on appeals it also provides for rectification of mistakes apparent in such orders clause 26-this clause provides for the exclusion' of the jurisdiction of all courts, etc, except the supreme court in relation to matters in respect of which appeals would lie to the appellate tribunal clause 27-this clause provides for the transfer to the appellate tribunal of all matters llending in the courts and in the customs excise and gold (control)' appellate tribunal which fall within the jurisillctlon of the proposed tribunal however, appeals penmng in the high court shan not be so transferred 'clause 28-this clause makes it clear that all 'proct>edin~s be'fnre the appellate trft-unal shall be depmed to be judicial proceedtn~ clause 29-this clause makes it clear that member!! ann !!taft oj the appellate tribunal shall be aeemed to be public servants uzaure 30-thia clause provides for protection of the central government or the president or other members of the appellate tribunal in respect of anything done in good faith in persuance of this act   -clause 31-this clause is for giving overriding effect to the pro- wions of the legislation claue 32-this clause empowers the central government to make rules for various matters relating to procedure of the appellate tribunal, conditions of rervice of president and other members and similar other matters for the proper functioning of the appellate tribunal cla'u3e 33-this clause empowers the central government to make suitable provtstodl for removing any difficulty in giving effect to the provisions of the legislation clause 34-this clause provides for the consequential amendment in th, central exci'l!les act and the customs act the customs and excise appellate tribunal bill, 1986, provides for the adjudication-by an appellat:e tribunal, of disputes with respect to the duties of customs and excise and the valuation of the goods for the pur poses of assessment of such duties in persuance of article 323b of the constitution and for matters connected therewith or incidental thereto 2 clause 3 of the bill provides for the establishment of the appellate tribunal according to clause 4 of the bill, the appellate tribunal shall consist of a presidt'nt and such number of judicial and technical members as may be considered !lecessary a bench shall consist of one judicial member and nne technical member clause 10 t>rovides that the salaries and allowances payable to, and the other terms and conditions of service of, the president and other members shan be such as may be prescribed by the central government clause 13 provides that the central government ~hall determine the nature a~d categories of the officers and other employees l'equired to assist the appellate tribunal tn the discharge of its functions an-d proyide the appellate tribunal with such officers and other employees 8s it may deem fit salaries and allowances and condition!! of servi(~e of the officers and other employees of the tribunal shall be prescribed by the rules made bv the central government therp arr the provisions in the bill which will have ftnancial implications once it is e'n~ded ::i the anpellate tribunal will comprise six members fnc1ut!inf:! the president the salary and allowf\l'lces of the president of the tribunal would h(' those admissible to a ,tudlte of the supreme court th~ members will be ltiven the sp1nry and allpwanres of a rud!!e of a hf!1h cnurt adeqljate supportin/! st~ff ,,·ill 11~o have to be pro,rfded to the tribunal for its efficient functioning 4 it will also be necessary to provide for an adequate number of departmental renresentatives toj!'ether with supporlin!!' r-;tllff so that the 'oepartment's cases are put forward properlv and effectively before the appellate tribunal the details of the expenditure relatinj!' to the appellate t,ibllnal and the departmental representatives are given below:-------------------------__-----------st no post no averal!e monthly expendi ture annual expendi ture -- -~------ --  --------~ 3 4 s 1 2 '(a)' appel14te tribuml -- 9,000 l,or,oro - 8,000 - 4,80,000 ~ 4,391 52,692 ' 1 s 1 ~  ------- -1 president -  2 members  3 registrar (2000-2250) 3 4 , 2 4 asstt registrar (1500-2000) 2 3,759 90,216 , technical officer (2000-3500) revised scale 3 2,850 1,02,600 6 dos (level ii) 3 1,925 69,300 7 udcs 6 1,695 1,22,040 8 ldcs 6 1,270 91,440 9 ps to president & memben 6 2,850 2,05,200 10 pa (stenographers) 9 (6+3) 2,70,000 11 librarian  i 2,100 25,200 12 daftries/record keepers irl,0575o 38,070 3 13 peons/sepoys 9 875 ~94,soo 14 ta/da expenses-hiring of office accommodation/other expenses, etc  2,00,000 19,49,258 r 20,00,000 total: or say (b) d",lmmlal representatives (dr) '5,3] 660 ·1,91,400 1 senior dr (2500-2750) 3 2 drs (1500-2000) 3 3 tech officers (2000-3500) revised scale 3 'j 3,759 ~135,324 r 2,850 tl,02,600 ~2,28,820 4 pas/stenographers 9 1,695 61,020 5 udcs 3 6 idcs 3 1,270 '45,720 7 peons /sepoys 6 875 ~ 63,000 r 1,41,000 8 ta/da expenses hiring of office accommodation and other expenses 9,68,884 total: or say ~ 10,00,000 gross recurring expenditure [total or (a) and (b)] r  r:··  30,00,000 's recurring expenditure will be of the order of ri 30,00,ooonoil"'1'ecuning expenditure for jnitial setting up of the new tribunal maybe ,of ' the order of ri s lakhs  :memorandum regahding delegated legislationclause 32 of the bill empowers the central government, by notification in the official gazette, to make rules to carry out the provisions of the proposed legislation sub-clause (2) of this clause enumeratcoll tne matters with respect to which rules may be made under this clause these matters relate to, inter alia, to the salaries and allowanc and other terms and conditioils of service of president and other members, financial and administrative powers of the president, salaries and allowances and other conditions of service of the staff of the appellate tribunal and the manner of verification of certain documents to be filed in the appellate tribunal 2 as the matters with respect to which rules may be made under clause 32 pertain to matters of procedure or detail, the delegation of legislative powers is of a normal character 3 clause 33 of the bill empowers the central government to remove by order any difficulty which may arise in giving effect to the provision of the proposed legislation this is by way of abundant caution and for coveripg difficulties which it is not practicable to visualise it has, however, betm provided that no such order shall be made after the expiry of a period of three yearf; from the date of establishment of the appellate tribuna1 it has also been provided that a copy of every such order made shall be laid befo1"e each housf: of parliament   ex'j,ract from the central excises and salt acr, 1944(1 of 1944) - - - - - 358 (1)                    -                               -                                         -                                                               - appeals to the ap-pellate tribunal     {2) the collector of central excise may, if he is of opinion that an order passed by the appellate collector of central excise under section ilj, as it stl'on inunecilately before the appointed day, or the collector (appeals) under sectlon 3~a, is not legal or proper, direct any central c;xclse olficer authorised by him in this behalf (hereafter in tms chapter referred to as the authonsed officer)                                                       to appeal on his behalf to the j\ppellat~ tribunal against such order              -                          -                                       -                                                    -                                                                  - powers of boerd or col1ector of central excise to pasli ler-min orders      35e (1) the board may, of it$ own motion, call for and examine the ,j,'ecord of any proceec1jng in which a coilector of central                                                               ~x':!lse as an a'cijudicatmg authority nas passed any decision or order under tois act tor the purpose of satlstymg itseil as                                              to the legality or pro-priety oi any such decision or orner and may, by order, c1jrect such collector to apply to the appellate tribunal lor the determmation 01 such points arising out of the dec1slon or order as may be spe:llied by the board in its order    (2) the coliector of central excise may, of his own motion, ~al1 fol' and examine the record of any proceeding in which an adjuthcating authol'1ty subordinate to him har passed any decision or order                                                               under this act for the purpose of satisfymg himself as to the legality or pro-priety of any such decision or oraer and may, by order, direct ~ulh authority to apply to the collector {appeals) 10r the determination of iuch points arising out of the decision or order as may be specified by the collector of central excise in his order    ,(3) no order shall be ,made under sub-section (1)                                                       or sub-section ,(2) after the expiry of one year from the date of the decision or order of the adjudicating authority    (4) where in pursuance of an order under sub-section (1) for sub-section (2), the adjudicating authority or the authorised officer makes an application to the appellate tribunal or the collector                                                            (appeals) within a period of three months from the date of communicatlon of the order under sub-section (1) or sub-section (2) to the adjudicating authority such application shall be heard by the appellate tribunal or the collector (appeals), as the case may be, as if such application were an appeal made against the decision or order of the adjudicating authority and the provisioll8 of this act regarding appeals, including the provisions of 8ub-section (4) of section 35b shall, so far as may be,  apply to such application            -                                   -                                              - ii  annexure extract i"rom the customs act, 1962 (52 of 1962)(2) the collector of customs may, if he is of opinion that an order passed by the appellate collector of customs under section 128, as it stood immediately before the appointed day or the collector (appeals) under section 128a, is not legal or proper, direct the proper officer to appeal on his behalf to the appellate tribunal against such order  129d (1) the board may, of its own motion, call for and examine the record of any proceedings in which a collector of customs as an adjudicating authorty has passed any decision or order under this act for the purpose of satisf~ing itself as to the legality or propriety of any such decision or order and may, by order, direct such collector to apply to the appellate tribunal for the determination of such points arising out of the decision or order as may be specified by the board in its order (2) the collector of customs may, of his own motion, call for and examine the record of any proceeding in which an adjudicating authority subordinate to him has passed any decision or order under this act for the purpose of satisfying himself as to the legality or propnety of any such decision or order and may, by order, direct such authority to apply to the collector (appeals) for the determination ot such points arising out of the decision or order as may be specified by the collector of customs in his order (3) no order shall be made under sub-section (1) or sub-section (2) after the expiry of one year from the date of the decision or order of the adjudicating authority (4) where in pursuance of an order under sub-section (1) or subsection (2), the adjudicating authority or any officer of customs authorised in thi5 behalf by the collector of customs, makes an applicati()n to the appellate tribunal or the collector (appeals) within a period of three months from the date c'f communicatin of the order under sub-section (1)or sub-section, (2) to the adjudicating authority, such application shall be heard by the appellate tribunal or the collector (appeals) as the case may be, as if such application were an appeal made clgawt the decision or order of the adjudicating authority and the provisions of this act reg~rding appeals, including the provisions of sub-section (4) of section 129a shall, so far as may be, apply to such application a bill to provide for the adjudication, by an appellate tribunal, of disputes with respect to the determination of the rates of duties of customs and central excise on goods and to the valuation of goods fur the purposes of assessment of such duties, in pursuance of article 323b of the constitution and for matters connected therewith or incidental thereto (shri vishwanath pratap singh, minister of finance) 