2017 (5) TMI 1476 - HC - Central Excise

High Court overturns CESTAT's decision, orders fresh appeal decision within three months.

S.K. Gupta and A.K. Srivastava Versus Commissioner Of Customs and Central Excise, Meerut

The High Court allowed the appeal, setting aside the CESTAT's order and remitting the matter for a fresh decision. The Court held that the tribunal erred ... Maintainability of appeal - Held that: - the tribunal was not justified to avoid the decision on merits of the statutory appeal when specific directions were issued by the High Court to decide the same notwithstanding the pendency of appeal before the Supreme Court when there is no stay of the proceedings before the CESTAT. Accordingly, the order of the CESTAT impugned therein was set aside and it was directed to decide the appeal afresh on merits - appeal allowed by way of remand. Issues involved:Appeal against CESTAT order, Avoidance of decision on merits, Setting aside CESTAT order, Remitting matter for fresh decision.Analysis:The appellant filed a Central Excise Appeal against the order of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) dated 29.11.2016. The CESTAT disposed of the appeal stating that the issue was subjudice before the Supreme Court, allowing the appellant to return after the final verdict of the Apex Court. Another appeal on the same issue by a company was also disposed of in a similar manner by the CESTAT. However, the High Court allowed the company's appeal, stating that the tribunal was not justified in avoiding a decision on the merits of the statutory appeal when specific directions were issued by the High Court to decide the matter despite the pendency of the appeal before the Supreme Court without a stay of proceedings. Consequently, the High Court set aside the CESTAT's order and directed the tribunal to decide the appeal afresh on merits within three months from the date of the order.The High Court, having set aside the CESTAT's order in the appeal of the company, decided to accept the same view and allowed the present appeal accordingly. The CESTAT's order dated 29.11.2016 concerning the appellant's appeal was set aside, and the matter was remitted to the tribunal for a fresh decision in accordance with the law. Therefore, the appeal was allowed based on the High Court's judgment and order dated 23.03.2017, which directed a fresh decision by the tribunal on the merits of the appeal.