2018 (3) TMI 720 - AT - Customs

Classification of Steam Coal and Bituminous Coal - Held that - it is worth mentioning that approximately 350 appeals on the said issue filed before different benches and large number of the same are before this bench. Since the final disposal of the appeals rests on the judgment of the Hon ble Apex Court on the classification issue of Steam Coal and Bituminous Coal, therefore, we are not in agreement with the argument of the learned Special Counsel for the Revenue that the Revenue would be free to enforce the demands during the intervening period i.e. after the present order is passed and till the final verdict of Hon ble Supreme Court delivered. In the interest of justice the status quo should be maintained i.e. no recovery nor any refund of the amounts involved in these appeals would be processed during this period. Appeal disposed off.

Summary

Issues:
Classification of Steam Coal and Bituminous Coal

Analysis:
The judgment by the Appellate Tribunal CESTAT Ahmedabad dealt with the major issue of the classification of Steam Coal and Bituminous Coal. The appeals were taken up following conflicting views expressed by different benches of the Tribunal. The matter was referred to the Larger Bench for resolution. The Larger Bench, after hearing all concerned, passed an order on 16.01.2017, which was listed by the Registry at Ahmedabad for the appeals. The learned Advocate for the appellants raised concerns about not receiving the certified copy of the Larger Bench order, emphasizing the ancillary issues raised in the appeals. On the other hand, the Revenue's representative argued that the judgment of the Larger Bench was binding and that the Revenue should be allowed to recover outstanding amounts in several cases pending before different benches. The Tribunal acknowledged the substantial legal question involved in the classification issue and the conflicting opinions of various benches.

The Tribunal referred to the judgment of the Hon'ble Allahabad High Court, emphasizing that the pendency of an appeal before the Apex Court should not hinder the Tribunal's decision-making process. The order of the Larger Bench dated 16.01.2017 was reproduced, highlighting the conflicting views of different benches on the classification of coal and the subsequent challenges and directions given by the Higher Courts. The Tribunal reiterated the liberty granted to the appellants to approach the Tribunal after the final verdict from the Apex Court on the classification issue.

Regarding the disposal of the appeals, the Tribunal maintained the status quo, deciding that neither the Revenue could enforce demands nor could the appellants claim refunds until the final verdict of the Hon'ble Supreme Court on the classification issue. The Tribunal clarified that any ancillary issues raised would be addressed after the main issue's verdict. Both parties were given the liberty to approach the Tribunal after the Supreme Court's decision. The appeals were disposed of with these directions to maintain the status quo until the final judgment by the Apex Court.