2011 (1) TMI 385 - HC - Central Excise

Order of CESTAT Tribunal - The CESTAT Tribunal order dismissing the appeal of the Revenue - Tribunal has virtually assigned no reason while disposing of the appeal - The order of the Commissioner (Appeal) is well founded - The grounds of appeal by the Revenue are not relevant - The order passed by the Tribunal cannot be sustained and the matter should be remanded back for fresh decision after considering the grounds urged by the Revenue in support of the appeal - Not gone into the merit - No reason was assigned while disposing of the appeal Set aside the order and remand the matter back to the Tribunal.

Summary

Issues:
Appeal under section 130 of the Customs Act, 1962 regarding order dated 17th December, 2003 passed by the Customs, Excise and Service Tax Appellate Tribunal, Eastern Zonal Bench, Kolkata dismissing the appeal of the Revenue due to lack of reason assigned.

Analysis:
The High Court of Calcutta heard an appeal under section 130 of the Customs Act, 1962, filed by the Commissioner of Customs (Port), Kolkata against an order dated 17th December, 2003 passed by the Customs, Excise and Service Tax Appellate Tribunal, Eastern Zonal Bench, Kolkata. The Tribunal had dismissed the appeal of the Revenue, and the Commissioner of Customs was dissatisfied with this decision, leading to the present appeal before the High Court.

Upon reviewing the impugned order and hearing arguments from both parties, the High Court observed that the Tribunal had not provided any substantial reason for dismissing the appeal. The Court noted that the Tribunal's decision lacked a proper rationale, as reflected in the quoted reason for dismissal. The High Court further examined the grounds of appeal by the Revenue and found them to be well-founded, contrary to the Tribunal's assessment that deemed the grounds irrelevant.

Consequently, the High Court concluded that the order passed by the Tribunal was unsustainable due to the absence of proper reasoning. The Court decided to remand the matter back to the Tribunal for a fresh decision, emphasizing the importance of considering the grounds presented by the Revenue in support of the appeal. The High Court clarified that its decision to set aside the Tribunal's order and remand the case was solely based on the procedural deficiency of lacking reasons for the dismissal.

In the final directive, the High Court ordered that a photostat certified copy of its decision be provided to the concerned parties after completing the necessary formalities. This comprehensive analysis showcases the High Court's meticulous examination of the appeal under the Customs Act, highlighting the significance of providing reasoned judgments in legal proceedings to ensure transparency and fairness in the adjudicative process.