2019 (12) TMI 1685 - AT - Service Tax

Rectification of mistake under Section 35C (2) of the Central Excise Act, 1944 - errors apparent on the face of record or not - HELD THAT - It is settled principle of law, now that the decision has to be well reasoned and passed after consideration of the facts relevant to the record the finding in respect of the issues raised before the authority/ appellate authority. Irrelevant facts and arguments need not be included in the order, and those which are not relevant for arriving at the decision should be avoided. Also decision need not be loaded with unnecessary information and legal knowledge of the author of the judgment. The entire application made for the recall of the impugned order is based on the submission that the tribunal has while passing the impugned order not recorded any finding in respect of the decision rendered by co-equal bench of CESTAT Chennai in case of IndusInd Bank Ltd. 2019 (2) TMI 26 - CESTAT CHENNAI - Even if for the moment the argument as made in the application for rectification of the order, the final conclusions arrived in the impugned order will not change. The Rectification of Mistake Application filed by the Applicant is disposed of.

Summary

Issues Involved:
1. Rectification of mistake u/s 35C(2) of the Central Excise Act, 1944.
2. Non-consideration of judicial precedents and RBI guidelines.
3. Grounds for recall of the order.
4. Distinguishing the decision of the Chennai Tribunal in IndusInd Bank Ltd.
5. Legal principles for writing judgments and rectification of mistakes.

Summary:

1. Rectification of Mistake u/s 35C(2) of the Central Excise Act, 1944:
The applicant filed for rectification of mistake u/s 35C(2), claiming errors in the tribunal's order dated 13.09.2019. The applicant argued that the tribunal failed to consider the decision in IndusInd Bank Ltd. vs. Commissioner of Service Tax, Chennai, and various RBI regulations and circulars.

2. Non-Consideration of Judicial Precedents and RBI Guidelines:
The applicant differentiated subvention income from other fee-based incomes, relying on judicial precedents, particularly the IndusInd Bank case. The applicant contended that the tribunal did not consider the RBI guidelines and circulars that recognize subvention income as interest.

3. Grounds for Recall of the Order:
The applicant sought recall of the order on several grounds, including non-consideration of a coordinate bench decision, non-consideration of contentions urged, and the need for referral to a larger bench in case of differing opinions. The applicant also argued that the appeal order was based on incorrect assertions and that the Technical member had taken a contrary position in a similar case.

4. Distinguishing the Decision of the Chennai Tribunal in IndusInd Bank Ltd:
The tribunal noted that the decision in IndusInd Bank Ltd. was distinguished by the Authorized Representative during arguments. The tribunal held that the decision was rendered per incuriam as it did not consider earlier decisions by co-equal benches. Therefore, it did not have binding precedent value.

5. Legal Principles for Writing Judgments and Rectification of Mistakes:
The tribunal cited various Supreme Court decisions emphasizing the need for reasoned judgments. It held that the decision must be well-reasoned and based on relevant facts, avoiding unnecessary information. The tribunal concluded that the final conclusions in the impugned order would not change even if the argument for rectification was accepted. The tribunal reiterated that debatable points of law could not be grounds for rectification.

Conclusion:
The tribunal dismissed the application for rectification, stating that the issues raised were not errors apparent on record and should be addressed in an appeal before the appropriate authority. The tribunal emphasized that the decision in IndusInd Bank Ltd. was per incuriam and did not have binding precedent value. The application for rectification was disposed of accordingly.