2022 (8) TMI 1100 - HC - Central Excise

High Court allows delay in cross-objection filing in Tax Appeal, directs Tribunal to decide jurisdictional issue.

The High Court allowed and condoned the delay in filing a cross-objection in a statutory Tax Appeal. The respondent raised the issue of lack of ... Jurisdiction of adjudicating authority - delegation of adjudicatory powers under Central Excise Act and Rules - condonation of delay in filing cross-objection - remand for fresh considerationJurisdiction of adjudicating authority - delegation of adjudicatory powers under Central Excise Act and Rules - remand for fresh consideration - Whether the original order of adjudication was passed without jurisdiction by Shri C.M. Mehra in his capacity as Commissioner of Central Excise & Service Tax, Siliguri, and the appropriate forum for deciding that question. - HELD THAT: - The Court observed that the Customs, Excise and Service Tax Appellate Tribunal, East Regional Bench, Kolkata, had earlier recorded a prima facie view that Shri C.M. Mehra may have lacked jurisdiction to act as Commissioner of Central Excise & Service Tax, Siliguri, and that the impugned order prima facie appeared to have been passed without necessary jurisdiction. The respondent had sought to include this specific ground in the appellate proceedings, but the learned Tribunal's impugned judgment did not consider that ground. Given the direct relevance of the jurisdictional question to the determination of the pending tax appeal, the High Court concluded that the matter required adjudication by the Tribunal itself. The Court therefore disposed of the cross-objection and directed the Tribunal to decide the jurisdictional issue after giving adequate opportunity of hearing to both parties within a specified timeframe, leaving the main Tax Appeal pending for further consideration after the Tribunal's decision.Cross-objection disposed; the jurisdictional question as to whether Shri C.M. Mehra had authority to pass the original adjudication is remanded to the Customs, Excise and Service Tax Appellate Tribunal, East Regional Bench, Kolkata, to be decided after hearing the parties preferably within three months, but not later than four months from communication of a certified copy of this order.Condonation of delay in filing cross-objection - Validity of the application for condonation of delay in filing the respondent's cross-objection. - HELD THAT: - The Court recorded that, upon considering the submissions and the application for condonation of delay, it had allowed the application and condoned the delay in filing the cross-objection, thereby bringing the cross-objection on record in terms of the earlier order dated 04th August, 2022.Delay in filing the cross-objection was condoned and the cross-objection was taken on record; the cross-objection is disposed of by remanding the jurisdictional issue to the Tribunal for fresh decision.Final Conclusion: The High Court kept Tax Appeal No. 01 of 2019 pending and disposed of the respondent's cross-objection by directing the Customs, Excise and Service Tax Appellate Tribunal, East Regional Bench, Kolkata, to decide the specific jurisdictional challenge to the original adjudication after giving both parties an opportunity of hearing, preferably within three months but not later than four months; thereafter the Tax Appeal will be taken up for further consideration. Issues Involved: Lack of Jurisdiction of Commissioner to Pass Original Order of AdjudicationAnalysis:The High Court initially admitted a statutory Tax Appeal based on substantial questions of law. During the pendency of the appeal, a cross-objection was filed by the respondent, which faced a delay in filing. The Court, after considering submissions and an application for condonation of delay, allowed and condoned the delay. The cross-objection was brought on record as per the order dated 04th August, 2022. Another order passed the same day directed both the appeal and the cross-objection to be considered on a specific date. When both matters were taken up, the primary contention of the respondent was the lack of jurisdiction of Shri C.M. Mehra to pass the original order of adjudication as the Commissioner of Central Excise & Service Tax, Siliguri. The Tribunal had previously waived the requirement of pre-deposit in a related case due to the lack of jurisdiction of Shri Mehra.Subsequently, the respondent filed an application seeking inclusion of additional grounds in the appeal, including the lack of jurisdiction of Shri Mehra to adjudicate the issue in dispute. The High Court noted that the Tribunal did not consider this jurisdictional issue in its previous judgment. Therefore, the Court directed the Tribunal to decide on this issue after providing a fair hearing to both parties within a specified timeframe. Once this issue is resolved, the Tax Appeal will be taken up for further consideration. The cross-objection filed by the respondent was disposed of accordingly, with instructions for the Tax Appeal to be listed under an appropriate heading after the specified period.