2018 (8) TMI 1822 - HC - Customs

Validity of remanding the case - issue involved is pending consideration before Hon'ble the Supreme Court against the views expressed by the Delhi High Court in M/S MANGALI IMPEX LTD., M/S PACE INTERNATIONAL AND OTHERS VERSUS UNION OF INDIA AND OTHERS 2016 (5) TMI 225 - DELHI HIGH COURT - HELD THAT - Once the legal issue, which is subject matter of appeal before the Tribunal, is pending consideration before Hon'ble the Supreme Court, the Tribunal itself should have decided the cases on merits after the decision of Hon'ble the Supreme Court instead of remanding those cases back to the Adjudicating Authority. The process adopted by the Tribunal apparently is to dispose of the cases pending before it without application of mind. That approach should have been avoided. Even the order passed by the Tribunal only states that the Adjudicating Authority shall decide the matters afresh after decision of Hon'ble the Supreme Court in Mangali Impex Limited's case. In fact, vide similar orders, the Tribunal had disposed of more than 50 cases. The impugned order passed by the Tribunal is set aside. The matter is remitted back to the Tribunal to be decided on merits after decision of Hon'ble the Supreme Court in Mangali Impex Limited's case - Appeal allowed.

Summary

Issues:
Appeal against CESTAT's order remanding case back to Adjudicating Authority, pending legal issue before Supreme Court, need for remand, application of mind by Tribunal, disposal of cases without merit consideration.

Analysis:
The High Court heard an appeal by the Revenue against CESTAT's order remanding a case back to the Adjudicating Authority. Both parties agreed that the remand was unnecessary as the legal issue was pending before the Supreme Court following a decision by the Delhi High Court in a specific case. The parties argued that the Tribunal should have decided the case on merits after the Supreme Court's decision, rather than remanding it. The High Court acknowledged the merit in this argument, criticizing the Tribunal's approach of remanding cases without proper consideration. The Tribunal's decision to remand over 50 cases in a similar manner was also highlighted as problematic.

The High Court allowed the appeal, setting aside the Tribunal's order and remanding the matter back to the Tribunal for a decision on merits following the Supreme Court's judgment in the relevant case. The High Court emphasized the importance of considering legal issues pending before higher courts and criticized the Tribunal's approach of disposing of cases without proper application of mind. The judgment serves as a reminder for tribunals to carefully consider legal precedents and pending issues before making decisions, avoiding unnecessary remands and ensuring cases are decided on their merits.