2018 (12) TMI 1435 - HC - Customs

Principles of natural justice - appellant s grievance in this case is that its appeal before the CESTAT against the order-in-appeal of the Commissioner of Customs dated 27.12.2016 was not dealt with but was merely dismissed on the ground that the Revenue s appeal was rejected - Held that - We cannot interfere in the order which has already been sustained by the Tribunal, especially when the High Court upholds the Tribunal order. Present appeal is nothing but an example of misuse of the judicial process. This Court expresses its regret that the CESTAT which is under a duty to consider the appeals pending before it, on their merits, appears to have completely abdicated its responsibility merely on two circumstances; firstly, that the Revenue s appeal was rejected and secondly, that this Court had been approached on an earlier occasion for some directions - Appeal dismissed.

Summary

Issues:
1. Delay in filing the appeal
2. Dismissal of appellant's appeal by CESTAT
3. Failure of CESTAT to consider the appeal on merits

Analysis:

1. Delay in filing the appeal:
The High Court noted the delay in filing the appeal and, for reasons stated in the application, condoned the delay. The application regarding the delay was disposed of promptly.

2. Dismissal of appellant's appeal by CESTAT:
The appellant's grievance was that their appeal before the CESTAT was dismissed without being dealt with properly. The High Court observed that the Revenue's appeal and the appellant's appeal had different subject matters. The CESTAT's order was criticized for not applying its mind and dismissing the appeal merely because the Revenue's appeal was rejected earlier. The High Court set aside the CESTAT's order and directed the parties to appear before the CESTAT for further proceedings. The CESTAT was instructed to hear and dispose of the appellant's appeal by providing a reasoned order addressing the merits of the contentions.

3. Failure of CESTAT to consider the appeal on merits:
The High Court expressed regret over the CESTAT's failure to consider the appeals pending before it on their merits. It was emphasized that the CESTAT must record findings on each contention urged by the parties. The High Court allowed the appeal, directing the CESTAT to proceed with the assessee's appeal, hear it, and provide a reasoned order dealing with the merits of the contentions. The High Court highlighted that dismissing the appellate remedy without proper consideration is a misuse of the judicial process.