2019 (8) TMI 1377 - SC - Service Tax

Validity of order of CESTAT - appeal came to be dismissed on the specious ground that the issues raised in the appeals have already been adjudicated by the High Court - HELD THAT - There are no hesitation in taking the view that the subject matter before the High Court of Delhi in the Writ Petition, which was filed by the assessee, was limited to the claim of refund which was rejected by the department. The observations made in the judgment of the High Court, therefore, will have to be understood only in that context; and not as having adjudicated the correctness of the order passed by the adjudicating authority, which was the subject matter of appeals before the Appellate Tribunal at the instance of the department. The impugned order deserves to be set aside and parties relegated before the Appellate Tribunal for reconsideration of the appeals on its own merits and in accordance with law, uninfluenced by any observation made by the High Court - Appeal restored.

Summary

Issues:
- Appeal against judgment of Customs Excise and Service Tax Appellate Tribunal dismissing department's appeals.
- Interpretation of High Court's judgment in a Writ Petition related to claim of refund.
- Setting aside the impugned order and remanding the matter to the Appellate Tribunal for reconsideration.

Analysis:
The Supreme Court heard the appeals challenging the judgment of the Customs Excise and Service Tax Appellate Tribunal, which had dismissed the department's appeals citing that the issues raised were already decided by the High Court in a related Writ Petition. The Court clarified that the High Court's decision was limited to the claim of refund rejected by the department and did not address the correctness of the order under appeal. Therefore, the Tribunal needed to reconsider the appeals independently, without being influenced by the High Court's observations.

In light of the above, the Supreme Court set aside the impugned order and directed the parties to go back to the Appellate Tribunal for a fresh consideration of the appeals based on their merits and in compliance with the law, without being swayed by the High Court's remarks. The Court explicitly stated that it was not expressing any opinion on the arguments put forth by the parties in the remanded appeals, leaving all questions open for further deliberation.

Consequently, the Civil Appeals were disposed of with the terms mentioned, and any pending applications were also resolved accordingly. This judgment underscores the importance of a clear and unbiased reconsideration of appeals by the Appellate Tribunal, ensuring a fair and impartial review of the issues at hand without being influenced by prior judicial observations.