Customs Tribunal Order Set Aside for Medicine Company's Rectification Application on Demand & Penalty

The High Court set aside the Customs, Excise and Service Tax Appellate Tribunal's order rejecting a rectification application by a medicine manufacturing company regarding demand and penalty on physician samples. The Court emphasized the need for a proper review and restored the application for further consideration without delving into the merits of the case, allowing for a fresh decision based on law.

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Issues:
Challenge to order of Customs, Excise and Service Tax Appellate Tribunal regarding demand on physician samples and penalty imposition.

Analysis:
The petition under Article 226 challenges the Customs, Excise and Service Tax Appellate Tribunal's order dated 20th November, 2018, which rejected the petitioner's rectification application along with similar applications by other assesses. The petitioner, engaged in medicine manufacturing, faced demand confirmation and penalty imposition related to physician samples distributed for free and sold to another pharmaceutical company. The Tribunal's order on 26th April, 2018 only addressed the distribution of free physician samples. The rectification application highlighted the unaddressed issues of physician samples being sold and penalty imposition. The Tribunal dismissed the rectification application without providing justifiable reasons, prompting the Writ Petition.

The impugned order merely stated the dismissal of the rectification application without providing reasons for not addressing the petitioner's grievances. The High Court set aside the Tribunal's order, restoring the rectification application for further consideration, emphasizing the need for a proper review without reflecting on the merits of the petitioner's case. The Writ Petition was disposed of accordingly, allowing for a fresh decision on the rectification application based on law.

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