2023 (6) TMI 1348 - HC - Customs

Tribunal's Order Lacked Consideration; Case Remanded for Fresh Review Following Division Bench's Directions.

The HC concluded that the impugned order by the Customs, Excise & Service Tax Appellate Tribunal lacked proper application of mind and did not adhere to ... Non-speaking order - non-application of mind - remand for fresh consideration - condonation of delay - acceptance of classification for earlier periodNon-speaking order - non-application of mind - remand for fresh consideration - acceptance of classification for earlier period - Impugned appellate order held to be non-speaking and a product of non-application of mind and therefore set aside and remitted to the Tribunal for fresh consideration taking into account the Division Bench's observation about the earlier period. - HELD THAT: - The High Court examined the Tribunal's order dated 22nd March, 2023 and found that it contained no reference to the specific direction in the Division Bench's order dated 1st December, 2022 (notably paragraph 13) which asked the Tribunal to take into account that the department had accepted the classification adopted by the petitioner for the earlier period. In the absence of any mention or consideration of that observation, the Tribunal's order was concluded to be non-speaking and evidence of non-application of mind. In consequence, the matter was remanded to the Tribunal with a clear direction to pass a fresh order after expressly taking into consideration the Division Bench's observation regarding the earlier period when deciding condonation of delay and the appeal on merits as may be appropriate.The impugned order is set aside and the matter is remanded to the Tribunal to pass a fresh, speaking order after considering the Division Bench's observation about the earlier period.Final Conclusion: Writ petitions disposed of by setting aside the Tribunal's order and remanding the matter for fresh disposal in accordance with the Division Bench's observation; the Tribunal must consider the earlier period (April, 2008 to September, 2008) where the department had accepted the petitioner's classification. Issues Involved: Challenge to impugned order by Customs, Excise & Service Tax Appellate Tribunal based on remand order from Division Bench regarding limitation in filing appeal.Judgment Summary:Issue 1: Impugned Order ChallengeThe petitioner challenged the impugned order dated 22nd March, 2023 passed by the Customs, Excise & Service Tax Appellate Tribunal, Kolkata. The Tribunal was directed by the Hon'ble Division Bench to reconsider the appeal in question, which was initially dismissed on grounds of limitation. The Tribunal's order was found to lack specific direction from the Division Bench to consider the earlier period where the department had accepted the petitioner's classification of specified services. The High Court observed the impugned order to be a non-speaking order, lacking application of mind. Consequently, the matter was remanded back to the sales tax authority tribunal for a fresh order, emphasizing the need to consider the Division Bench's observations from the previous judgment.Conclusion:The High Court, after considering the facts and submissions of the parties, concluded that the impugned order lacked proper application of mind and direction from the Division Bench. As a result, the writ petitions challenging the impugned order were disposed of, with a direction to remand the matter back to the sales tax authority tribunal for a fresh order, taking into account the specific observations made by the Hon'ble Division Bench in their previous judgment.