The High Court addressed the issue of rectification of an order...

The High Court addressed the issue of rectification of an order by the CESTAT, which rejected an application filed u/s 35C (2) of the Central Excise Act, 1944. The key question was whether the discount received by a bank from automobile dealers could be considered as a consideration for service. The Court held that a previous decision by the CESTAT was rendered per incuriam as it did not consider earlier decisions of equal strength. The Court noted the lack of specific references to contradictory decisions in the impugned order. Consequently, the Court quashed the order and remanded the matter to the Tribunal for fresh consideration.