2019 (11) TMI 1372 - SC - Central Excise

Maintainability of appeal - CENVAT credit - input services - place of removal - principles of natural justice - HELD THAT - The High Court ought to have analyzed the relevant facts and contentions raised in the subject appeal(s) on its own merit and ought not to have disposed of the same by a general observation, as is noticed from the analysis in the impugned judgment. The impugned judgment set aside - the appeal(s) are restored to the file of the High Court to its original number, for being considered afresh in accordance with law.

Summary

Issues:
Challenge to the judgment and order of the High Court of Judicature for Rajasthan at Jaipur in Central Excise Appeal Nos. 79/2018, 138/2018, 80/2018, and 81/2018 regarding the credit of service tax paid on outward freight as 'Input Service'.

Analysis:
The Supreme Court addressed the contention raised by the appellant regarding the credit of service tax paid on outward freight qualifying as 'Input Service'. The Court observed that the High Court did not analyze the relevant facts and contentions properly, leading to a general observation in the impugned judgment. The Court emphasized that the High Court should have evaluated the appeal on its own merit rather than disposing of it summarily. The Court disagreed with the respondent's argument that the appellant's position was unstatable.

The Supreme Court referred to the amended definition of 'input service' effective from 01.03.2008 and the judgment in Ultra Tech Cement Ltd. case. The Court held that the Tribunal's judgment could not be sustained in law, and the demand needed to be revived. However, the Court remanded the matter back to the Tribunal to consider the question of penalty. The Court set aside the Tribunal's order and confirmed the disallowance of CENVAT Credit on the mentioned aspects, along with interest. The Court clarified that no opinion was expressed on the merits of the penalty issue.

Conclusively, the Supreme Court set aside the impugned judgment and restored the appeal to the High Court for a fresh consideration in accordance with the law. All contentions for both parties were left open, and the appeals were disposed of without any costs. The Court's decision highlighted the importance of a thorough analysis of facts and contentions in adjudicating appeals to ensure a just and fair outcome.