High Court directs CESTAT to reconsider rectification application promptly

The High Court allowed the petition challenging the Customs, Excise and Service Tax Appellate Tribunal's dismissal of the petitioner's rectification application. The Court emphasized that the petitioner should be granted the same benefit as other parties who had rectification applications allowed and highlighted the absence of a specific order on merits by the Apex Court. In the interest of justice, the High Court directed CESTAT to reconsider the petitioner's rectification application promptly to prevent gross injustice.

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Issues:
Challenge to order of Customs, Excise and Service Tax Appellate Tribunal
Rectification application before CESTAT dismissed
Doctrine of merger in statutory appeal

Analysis:
1. The petitioner challenged an order by the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) rejecting their application to recall a previous order. The original order was related to the classification and rate of duty by the Assessing Officer. The petitioner's appeal was initially filed in the Apex Court, but three other parties filed rectification applications before CESTAT, which were allowed, leading to a fresh hearing for them but not for the petitioner.

2. The CESTAT dismissed the petitioner's rectification application, stating that by filing an appeal in the Apex Court, the petitioner exhausted their remedy, and withdrawing the appeal without express leave was impermissible. However, the High Court noted that if the benefit was extended to other parties, it should also be extended to the petitioner.

3. The High Court considered the doctrine of merger in statutory appeals, with conflicting arguments presented by counsels. While one party argued that withdrawal of the appeal meant the order merged with CESTAT's order, the other party cited relevant judgments to support their stance. The High Court analyzed these arguments and found that the doctrine of merger did not apply in this case due to the specific circumstances.

4. Ultimately, in the interest of justice, the High Court allowed the petition and directed CESTAT to reconsider the petitioner's rectification application. The Court highlighted various reasons for this decision, including the common nature of the original order, the acceptance of rectification applications for other parties, and the absence of a specific order on merits by the Apex Court. The High Court emphasized that gross injustice would result if the petition was not allowed, and instructed CESTAT to hear and dispose of the appeal promptly.

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