2002 (4) TMI 3 - AT - Service Tax

Commissioner's Review Orders Deemed Illegal; Assessees' Appeals Allowed

The Appellate Tribunal CEGAT, New Delhi held that the Commissioner lacked jurisdiction to review orders and direct filing of appeals under Section 35E(3). ... Power of the Commissioner to review subordinate orders and direct filing of appeals - scope of review jurisdiction of the Commissioner - illegality of directions to subordinate officers to file appeals - nullity of orders passed pursuant to excess of jurisdiction - effect of retrospective amendment reviving previously dropped demandsPower of the Commissioner to review subordinate orders and direct filing of appeals - scope of review jurisdiction of the Commissioner - illegality of directions to subordinate officers to file appeals - Whether the Commissioner is empowered to review orders passed by subordinate authorities and direct them to file appeals under the statutory scheme - HELD THAT: - The Tribunal examined the statutory provisions and retrospective amendments enacted by the Finance Act, 2000 which revived demands earlier dropped following the Supreme Court decision in Laghu Udyog Bharati. Although the Commissioner reviewed earlier orders and directed subordinate officers to file appeals, the Tribunal found on interpretation of the relevant statutory scheme that Section 84 of the Finance Act, 1994 does not confer power on the Commissioner to review orders of authorities below him and to issue directions to file appeals. Consequently, directions issued by the Commissioner pursuant to such review were held to be beyond jurisdiction. Orders passed pursuant to those directions, being founded on an exercise of power not vested in the Commissioner, are a nullity in law. The Tribunal therefore allowed the appeals and held that consequential reliefs, if any, were admissible to the assessees. [Paras 2, 9]Directions issued by the Commissioner to subordinate officers to file appeals pursuant to a review were without jurisdiction and illegal; orders passed pursuant to such directions are a nullity and the appeals are allowed.Final Conclusion: The Tribunal allowed the appeals, holding that the Commissioner had no power under the statutory scheme to review subordinate orders and direct filing of appeals; directions issued on that basis were illegal and orders resulting therefrom are void, with consequential reliefs to the assessees permitted. The Appellate Tribunal CEGAT, New Delhi disposed of four appeals and two miscellaneous applications regarding the Commissioner's power to review orders and direct filing of appeals under sub-section (3) of Section 35E. The Tribunal found that the Commissioner did not have jurisdiction to review orders and issue directions to file appeals, making such actions illegal and without jurisdiction. As a result, the appeals filed by the assessees were allowed, and consequential relief was granted to them.