2015 (3) TMI 875 - HC - Service Tax

Mainatinability of appeal - Availability of alternate remedy - Held that- authorities of the Central Excise Department have been repeatedly issuing notices despite the matter having been settled by the Tribunal without even challenging the order of the Tribunal before the higher forum. - decision of the Tribunal would be binding upon the authorities so far as any point of law is settled therein subject to the right to challenge such decision before the higher forum. - However, considering the other fact that the petitioners have approached this Court against the notices issued by the service tax authorities, we consider it appropriate that the issue of fact and law may be raised more appropriately by the petitioners before the authorities by filing their show-cause/reply to the notice. - Decided against assessee.

Summary

Issues:
- Jurisdiction of Central Excise Department
- Binding nature of Tribunal decisions on authorities
- Right to challenge decisions before higher forum
- Disposal of writ applications with directions

Jurisdiction of Central Excise Department:
The central issue in this case revolves around the jurisdiction of the Central Excise Department and the repeated issuance of notices by the authorities despite the matter being settled by the Tribunal. The counsel for the Department argued that a similar matter had been rejected previously due to the availability of a statutory alternative remedy. On the other hand, the petitioners contended that the matter had already been settled by different Benches of the Tribunal, citing a specific case. The High Court acknowledged that decisions of the Tribunal are binding on authorities unless challenged before a higher forum. However, the petitioners were directed to raise the issue before the authorities by responding to the notices.

Binding nature of Tribunal decisions on authorities:
The Court emphasized that decisions of the Tribunal hold binding authority on the concerned authorities, particularly on points of law settled therein. The principle was reiterated that authorities must adhere to Tribunal decisions unless challenged before a higher forum. This underscores the importance of legal precedents set by the Tribunal in guiding the actions of the Central Excise Department.

Right to challenge decisions before higher forum:
While recognizing the binding nature of Tribunal decisions, the Court also highlighted the right of parties to challenge such decisions before a higher forum. This right ensures that parties have the opportunity to contest legal interpretations or outcomes established by the Tribunal, thereby safeguarding their interests and ensuring the proper application of the law.

Disposal of writ applications with directions:
Ultimately, the Court disposed of both writ applications with specific directions. It was deemed appropriate for the petitioners to address the issues of fact and law raised by the notices through the prescribed channels, i.e., by filing their show-cause replies before the authorities. This approach aimed to ensure that the legal matters at hand were appropriately dealt with by the concerned parties within the established legal framework.