2015 (9) TMI 933 - HC - Service Tax

Petitioner Granted Appeal in Tax Dispute Over Liability Allocation

The Jharkhand High Court allowed the petitioner to file an appeal before the Appellate Authority/Commissioner (Appeal), Central Excise and Service Tax, ... Duty liability - Violation of principle of natural justice - Held that:- Petitioner submitted that in view of the order passed by the Division Bench in [2013 (10) TMI 1164 - JHARKHAND HIGH COURT ] absolving the liability of the Damodar Valley Corporation, the liberty be given to the petitioner to file an appeal before the Appellate Authority/Commissioner (Appeal), Central Excise and Service Tax. - Petitioner disposed of. Issues:Challenge to order passed by Additional Commissioner, jurisdiction of appeal, liability of Damodar Valley Corporation, principles of natural justice.Jurisdiction of Appeal:The writ petition challenged the order passed by the Additional Commissioner, Central Excise and Service Tax, Ranchi. The court noted that as per procedure, the appeal should have been preferred before the Commissioner (Appeal), Central Excise and Service Tax. The petitioner did not file an appeal due to the direction in the order fastening liability on Damodar Valley Corporation. However, a previous court order absolved the corporation of liability, leading to the petitioner seeking liberty to file an appeal. The court disposed of the petition, allowing the petitioner to file an appeal before the Appellate Authority/Commissioner (Appeal), Central Excise and Service Tax.Liability of Damodar Valley Corporation:The petitioner argued that the Additional Commissioner's order fastened liability on Damodar Valley Corporation, which deterred them from filing an appeal. The petitioner referenced a previous court order that absolved the corporation of liability, emphasizing that the liability now solely rests on the petitioner. Based on this argument, the court granted the petitioner liberty to file an appeal before the appropriate authority.Principles of Natural Justice:The court highlighted that a previous court order in a related matter found the order fastening liability on Damodar Valley Corporation to be violative of the principles of natural justice. This finding influenced the current judgment, where the court allowed the petitioner to file an appeal, considering the shift in liability and the principles of natural justice.This detailed analysis of the judgment from the Jharkhand High Court addresses the issues of challenge to the order, jurisdiction of appeal, liability of Damodar Valley Corporation, and the application of principles of natural justice. The court's decision to grant the petitioner the liberty to file an appeal reflects a consideration of procedural requirements, liability allocation, and adherence to principles of natural justice.