2019 (12) TMI 1165 - HC - Central Excise

Principles of natural justice - Demand of interest - credit availed stands reversed, without utilization - both sides submits that no detailed discussion of the judgments cited by them in the subject case nor has the later amendment of law in this regard been discussed by the learned Tribunal - HELD THAT - We are inclined to set aside the order of the learned Tribunal with a direction to the Tribunal to pass a detailed and speaking order, on merits and in accordance with law, after hearing both the sides. Appeal allowed by way of remand.

Summary

Issues:
1. Liability of the Assessee to pay interest.
2. Adequacy of discussion and consideration of judgments by the Tribunal.
3. Requirement for a detailed and speaking order by the Tribunal.

Analysis:
1. The appeal pertains to the liability of the Assessee to pay interest as per the order passed by the Customs Excise and Service Tax Appellate Tribunal. The Tribunal, relying on various decisions, including those of the Karnataka High Court, Madras High Court, and Gujarat High Court, held that non-reversal of accumulated and unutilized Cenvat credit before utilization does not attract interest liability. The High Court noted the lack of detailed discussion on the judgments cited and the absence of consideration of the later amendment of law by the Tribunal. Consequently, the High Court set aside the Tribunal's order and directed a detailed and speaking order to be passed, considering all aspects and contentions raised by both parties.

2. The High Court observed that the judgments referred to in the case were not extensively discussed by the Tribunal. Additionally, the Tribunal failed to address the subsequent amendment of the law related to the issue at hand. Both parties highlighted the inadequacy of the Tribunal's analysis regarding the merits of the case. In light of these submissions, the High Court decided to overturn the Tribunal's order and instructed a thorough examination of the matter, ensuring a comprehensive review of the legal aspects and arguments presented by the parties.

3. Given the lack of detailed consideration and discussion by the Tribunal on the relevant judgments and legal amendments, the High Court concluded that the order needed to be set aside. The High Court directed the Tribunal to provide a detailed and comprehensive order, addressing all aspects of the case and taking into account the arguments put forth by both the Appellant and the Respondent. The Civil Miscellaneous Appeal was disposed of with this directive, emphasizing the necessity for a well-reasoned decision in accordance with the law and after due consideration of all relevant factors.