Cenvat credit disputes require merits-based disposal; appeals cannot be closed with liberty to revive later.

The Tribunal was found to have properly disposed of appeals without deciding them on merits, despite a common question on entitlement to Cenvat credit on service tax paid on sales commission. The Court noted that where binding decisions had already addressed the main issue against the assessee, any concern about a later notification or its retrospectivity should have led to keeping the appeals pending, not disposing of them with liberty to revive later. Such a course was said to serve neither side and risk multiplicity of proceedings. The Tribunal's order was therefore quashed and the matters restored for decision in accordance with law.

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Issues: Whether the Tribunal was justified in disposing of the appeals without deciding them on merits and granting liberty to approach it again after the decision in another pending matter.

Analysis: The appeals involved a common question of law and fact concerning entitlement to Cenvat credit on service tax paid on sales commission. The Court noted that existing binding decisions had already decided the main issue against the assessee, and if the Tribunal considered that the effect of the subsequent notification and its retrospectivity required awaiting another decision, the proper course was to keep the appeals pending. Disposing of the appeals without adjudication on merits and with liberty to revive them later was held to be an improper procedure that served neither side and risked multiplicity of proceedings.

Conclusion: The Tribunal's order was quashed and set aside, and the appeals were restored to its file for consideration in accordance with law.

Final Conclusion: The appellate court corrected the Tribunal's procedural approach by remanding the matters, while leaving the substantive controversy open to be dealt with after the pending lead matter is decided.

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