Maintainability of appeal against interim order fails when the substantive order has already ceased to exist

An appeal against an interim order was found not maintainable because the substantive order challenged in the connected proceedings had already been recalled and had ceased to exist. The court treated the underlying dispute as infructuous, so the interim order could not independently survive or sustain the challenge. On that basis, the revenue's appeal was rejected.

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Issues: Whether the revenue's appeal against the interim order survived when the order challenged in the underlying appeal had already ceased to exist and the appeal had become infructuous.

Analysis: The impugned order in the underlying appeal was stated to have been recalled by the authorities after the amendment to the CENVAT Credit Rules, 2004 providing for proportionate credit. Once the order challenged before the Tribunal was no longer in existence, the interim order passed in that appeal could not independently sustain the present challenge. On that basis, the appeal was found to be not maintainable.

Conclusion: The appeal was held to be not maintainable and was rejected.

Ratio Decidendi: An appeal against an interim order becomes not maintainable when the substantive order under challenge in the connected proceedings has ceased to exist and the matter has become infructuous.

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