2014 (7) TMI 65 - AT - Central Excise

Power of CESTAT to rectify / review its own order - Reversal of the Cenvat credit - whether after passing final order by Tribunal against appeal of the appellant on the self-same issue Tribunal can say that there is pending of dispute since entertaining the appeal against above rejection order shall amount to review of the appeal decision of past - Held that - It is settled law that after Tribunal passes order it becomes functus officio and it does not have power to review its order in absence of statutory mandate in that regard. Therefore entertaining the present appeal shall result in review in disguise of the appeal decision made in the appeal already disposed as stated aforesaid. Pendency of the dispute is not possible to be appreciated in absence of pendency of remedy before higher court against Final Order dated 2-2-2010 passed by Tribunal. The appellant appears to have misconceived that its dispute is pending when it has not approached the higher court against the final order of the Tribunal - Decided against assessee.

Summary

Issues:
1. Appeal against rejection of application for reversal of Cenvat credit used in manufacture of exempted goods.
2. Interpretation of the term "dispute pending" under Section 72(1) of the Finance Act, 2010.
3. Jurisdiction of the Tribunal to entertain an appeal after passing a final order on the same issue.

Analysis:
1. The appeal was filed against the rejection of an application dated 15-6-2010 for the reversal of Cenvat credit utilized in manufacturing exempted goods from February 2001 to March 2005. The appellant contended that despite losing a previous appeal on the same issue, they had the right to exercise the option under Section 72(1) of the Finance Act, 2010. The appellant believed that since they had the remedy of appeal before the High Court against the Tribunal's order, a "dispute was pending," justifying the application for reversal of Cenvat credit.

2. The key contention revolved around the interpretation of the term "dispute pending." The appellant relied on a Supreme Court judgment to argue that the dispute was still pending, allowing them to exercise the option for reversal of Cenvat credit. However, the Revenue argued that without seeking an appeal before a higher court after the Tribunal's decision, there was no dispute pending. The Tribunal needed a pending remedy before a higher court to consider the dispute as ongoing for the purpose of exercising the reversal option.

3. The Tribunal analyzed whether it had jurisdiction to entertain the present appeal after passing a final order on the same issue in a previous appeal. It was established that once the Tribunal passed an order, it became functus officio and did not have the power to review its decision without a statutory mandate. Entertaining the current appeal would amount to reviewing the previous appeal decision, which was not permissible. Since the appellant had not approached a higher court against the final order of the Tribunal, the Tribunal concluded that there was no pending dispute to warrant the consideration of the present appeal. Therefore, both stay applications and appeals were dismissed.

This detailed analysis of the judgment highlights the legal intricacies involved in the interpretation of statutory provisions and the jurisdiction of the Tribunal in dealing with appeals on the same issue.