2014 (11) TMI 960 - HC - Central Excise

Validity of Tribunal s order - Whether in the facts and circumstances of the case, the Tribunal has committed substantial error of law by ignoring the High Court s decision in case of Elson Packaging Industries Pvt. Ltd. 2004 (4) TMI 137 - CESTAT, MUMBAI - Held that - once High Court has directed the Tribunal to consider the decision in the case of M/s. Elson Packaging Industries Pvt. Ltd. and the Tribunal records this fact in Paragraph 1 of its judgment, but again fails to consider the said judgment, therefore, the impugned order of the Tribunal cannot be maintained. Under the circumstances, the impugned order of the Tribunal is set aside - Matter remanded back - Decided in favour of Revenue.

Summary

Issues:
- Whether the Tribunal erred in ignoring the High Court's decision in a specific case.

Analysis:
The High Court heard arguments from the Senior Standing Counsel for the Central Excise & Customs Department, representing the appellant, and the counsel for the respondent-assessee. The appeal in question raised a critical legal issue regarding the Tribunal's alleged error in disregarding a previous decision of the High Court. The respondent's counsel suggested disposing of the appeal at the admission stage itself, which was agreed upon by both parties for final disposal based on the key question at hand.

The appellant's Senior Standing Counsel vehemently contended that in a prior litigation round between the same parties, the Revenue had challenged an order before the Court, which was subsequently remanded to the Tribunal for reconsideration in light of a specific decision involving Elson Packaging Industries Pvt. Ltd. The Senior Counsel emphasized that the Tribunal failed to consider this directive and relevant judgment, leading to the appeal's dismissal. Referring to the confirmation of the decision by the Division Bench of the Court, the appellant's stance was that the impugned order needed to be quashed and set aside due to the Tribunal's oversight in addressing the crucial precedent.

After considering the arguments presented by both parties, the Court concluded that the Tribunal's failure to adhere to the High Court's directive to consider the decision related to Elson Packaging Industries Pvt. Ltd. rendered the impugned order unsustainable. Consequently, the Court set aside the Tribunal's order, allowed the appeal in favor of the Revenue and against the assessee, and remanded the matter back to the Tribunal for reconsideration in compliance with the law, specifically directing the consideration of the judgment concerning Elson Packaging Industries Pvt. Ltd. Additionally, the Court clarified that both the Revenue and the assessee were entitled to raise any legal objections or contentions during the reconsideration process before the Tribunal.