2016 (4) TMI 1380 - HC - Service Tax

Cargo Handling Agent services - demand of service tax - invoking extended period - the appellant-Department has challenged the order of the Customs, Excise Service Tax Appellate Tribunal, West Zonal Bench at Mumbai, dated 3-9-2014 that was based on the judgment of the Orissa High Court in the case of COAL CARRIERS VERSUS COMMR. OF C. EX., CUS. ST., BHUBANESWAR 2011 (2) TMI 1140 - ORISSA HIGH COURT - HELD THAT - It appears that the Hon ble Supreme Court has allowed the appeal preferred by the assessees and the Department before the Hon ble Supreme Court and the judgment of the Orissa High Court in the aforesaid case has been set aside. It appears that the Hon ble Supreme Court has directed the CESTAT to constitute a larger Bench immediately so that the controversy is decided finally within one year. The impugned order passed by the CESTAT, dated 3-9-2014 is hereby quashed and set aside. The appeal filed by the respondent herein is restored before the CESTAT at Mumbai. Appeal disposed off.

Summary

Issues involved:
Challenge to order of Customs, Excise & Service Tax Appellate Tribunal based on judgment of Orissa High Court. Setting aside of CESTAT orders based on Orissa High Court judgment. Restoration of appeals before CESTAT at Mumbai in light of Supreme Court directions.

Analysis:
The High Court of Bombay heard a Central Excise Appeal where the appellant-Department challenged a decision of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) based on a judgment from the Orissa High Court. The Hon'ble Supreme Court had allowed an appeal by the assessees and the Department, setting aside the Orissa High Court judgment. The Supreme Court directed CESTAT to constitute a larger Bench promptly for a final decision within a year. Consequently, various CESTAT orders linked to the Orissa High Court judgment were annulled by the Bombay High Court, restoring the appeals for reconsideration and disposal by CESTAT.

The High Court quashed and set aside the impugned order of CESTAT dated 3-9-2014. The respondent's appeal was reinstated before CESTAT at Mumbai, with directions to dispose of the appeal in line with the Supreme Court's decisions that overturned the Orissa High Court judgment in the case that initiated the controversy. The Central Excise Appeal was thus disposed of with no specific order regarding costs, concluding the legal proceedings.