2016 (4) TMI 106 - HC - Central Excise

Remand orders - CENVAT credit denied - Held that - Any order of the Court or Tribunal amenable to appeal or revision and scrutiny by a superior Court was required to contain the necessary facts involved in the case, stand taken by both the parties, the submission made in support of their respective contentions, law applicable to the issues and lastly, the reasons in support of the conclusion The order dated 27.11.2014 is set aside and the matter is remanded to the Tribunal to hear the parties afresh and pass a reasoned and speaking order.

Summary

Issues involved:
1. Appeal against final order of Customs, Excise, Service Tax Appellate Tribunal.
2. Application of Cenvat Credit on iron and steel items used as structurals.
3. Issue of limitation in demand for Cenvat Credit.
4. Requirement of necessary facts in orders of Court or Tribunal.
5. Observations regarding orders lacking essential principles.
6. Remand of cases for fresh consideration by Tribunal.
7. Setting aside the order dated 27.11.2014.
8. Directions for the parties to appear before the Tribunal.
9. Liberty granted to Tribunal to proceed ex parte if necessary.
10. Allowance of the appeal.

Analysis:
1. The appeal was filed against the final order of the Customs, Excise, Service Tax Appellate Tribunal, New Delhi. The issue revolved around the application of Cenvat Credit on iron and steel items used as structurals. The Tribunal confirmed the demand stating that Cenvat Credit would not be available as per a Larger Bench decision. However, it was argued that the items were used for fabrication of capital goods, entitling the appellant to Cenvat Credit. The Tribunal's decision was based on the limitation issue, but it was held that since the issue was decided in favor of the Assessee before the Larger Bench declaration, the demand was time-barred and set aside without delving into the case's merits.

2. In a related matter, Tax Case No. 48 of 2012 highlighted the necessity for orders of Courts or Tribunals to include essential facts, parties' stands, submissions, applicable law, and reasons for the conclusion. Failure to adhere to these principles rendered the order unsustainable in law. The case was remanded for a fresh decision. Similarly, in Tax Case No. 13 of 2015, a similar remand was ordered due to the same reasons, emphasizing the importance of a thorough and reasoned decision-making process.

3. Consequently, the High Court set aside the order dated 27.11.2014 and remanded the matter to the Tribunal for a fresh hearing. The parties were directed to appear before the Tribunal with a copy of the order for the next hearing date. The Tribunal was granted the liberty to proceed ex parte if a party failed to appear without valid reasons, with a requirement to record the reasons for such action. Ultimately, the appeal was allowed, providing a comprehensive resolution to the issues raised in the case.