2018 (5) TMI 1072 - HC - Customs

Classification of Bituminous coal and Steam coal - appeal dismissed on ground of pre-deposit - Held that - it would be open for the appellants to request for revival of their appeals before the Tribunal. Such appeals would stand revived from the stage of meeting with the predeposit requirement - impugned orders passed by the Tribunal dismissing the appeals of the present appellants on the question of predeposit would not survive.

Summary

Issues:
1. Liquidation of appellant companies and authorization to pursue appeals.
2. Dismissal of appeals by CESTAT due to failure to fulfill predeposit condition.
3. Main issue of classification of Bituminous coal and Steam coal pending before Supreme Court.
4. Tribunal's decision to maintain status quo on recoveries and refunds pending Supreme Court judgment.
5. Disposal of appeals and revival process post the Supreme Court judgment.

Analysis:
1. The counsel for the appellant informed the court about the liquidation of the appellant companies in Tax Appeals No.782 and 783 of 2017. He was permitted to amend the cause title accordingly and stated that the Official Liquidator authorized him to pursue the appeals on behalf of the companies.

2. The three appeals in question were dismissed by the CESTAT for failing to meet the predeposit condition. The primary issue between the assessee and the department revolved around the classification of Bituminous coal and Steam coal. The Tribunal noted that the matter was pending before the Supreme Court and decided to halt any recoveries by the department and refund claims by the assessees until the Supreme Court's judgment was available.

3. The Tribunal emphasized that the final disposal of appeals rested on the Supreme Court's decision regarding the classification of Steam Coal and Bituminous Coal. It clarified that no recoveries or refunds would be processed during the interim period until the Supreme Court verdict was delivered. The Tribunal assured that any ancillary issues raised would also be addressed post the Supreme Court's decision, and both parties were allowed to approach the Tribunal after the Supreme Court's judgment.

4. Consequently, the appeals in question were disposed of in line with the Tribunal's decision to maintain status quo until the Supreme Court's judgment. Once the Supreme Court's judgment was issued, the appellants could request the revival of their appeals before the Tribunal, starting from the predeposit requirement stage. The outcome of the proceedings before the Supreme Court would determine the reconsideration of the predeposit requirement.

5. As a result, the impugned orders of the Tribunal dismissing the appeals due to the predeposit issue were no longer valid, and all appeals were disposed of accordingly, awaiting the Supreme Court's judgment for further proceedings.