2017 (4) TMI 1229 - HC - Service Tax

Maintainability of petition - availability of an alternative forum, being the Customs Excise and Service Tax Appellate Tribunal - ex facie error of law on the part of the adjudicating authority in ignoring a circular - Held that - the appellants contentions deserve to be examined - So far as the stay petition is concerned, there shall be a restraint order on realization of any sum in pursuance of the order of the Commissioner dated 27th December, 2016 until further order of this Court - petition maintained and thus admitted.

Summary

Issues involved:
1. Dismissal of writ petition by the First Court
2. Violation of principles of natural justice
3. Ex facie error of law by the adjudicating authority
4. Availability of an alternative forum - Customs Excise and Service Tax Appellate Tribunal

Analysis:

1. The High Court admitted the appeal subject to the condition that the appellants put the deficit court fees by a specified date. The appellants sought to invalidate an order of the Commissioner of Service Tax, which was dismissed by the First Court primarily due to the availability of an alternative forum, the Customs Excise and Service Tax Appellate Tribunal. The appellants argued that the First Court did not consider the violation of principles of natural justice as the adjudication order addressed issues not mentioned in the show cause notice. Another ground of appeal was the alleged error of law by the adjudicating authority in ignoring a circular. The Revenue contended that the appellants should have approached the Tribunal instead.

2. The High Court found merit in the appellants' contentions and decided to examine the grounds on which the appeal was based. The appeal was scheduled for a hearing on a specified date. A restraint order was issued on the realization of any sum as per the Commissioner's order until further court orders. The stay petition was disposed of accordingly, with the requirement for a paper book being waived as all relevant pleadings were already before the court. The appellants were directed to file an index, and service of notice to appeal was waived by the Revenue.

3. The application, which was part of the proceedings, was also disposed of by the High Court. The judgment provided a detailed account of the arguments presented by both parties and the reasons for admitting the appeal for further examination. The court's decision to issue a restraint order and the procedural directions given to the appellants were aimed at ensuring a fair and just hearing of the appeal. The judgment highlighted the importance of considering all relevant legal aspects, including principles of natural justice and errors of law, in adjudicating such matters.