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2023 (3) TMI 569 - HC - Service TaxRemand of the matter - It is the grievance of the petitioners that the Tribunal instead of deciding the matter has remanded it to the Assessing Officer in view of the fact that the matter being a case of M/s. PCM Cement Concrete Private Limited vs. Commissioner of Central Excise Customs and Service Tax 2017 (9) TMI 1382 - CESTAT KOLKATA is pending before the Hon ble Supreme Court. HELD THAT - It is true that Civil Appeal Nos.005702-005703/2018 is pending before the Hon ble Apex Court. We notice that entire basis of remand ordered by the Appellate Tribunal in the present case is on the ground of pending aforesaid Civil Appeal. Secondly, the Tribunal has noted that to adjudicate the issue involved the matter needs to be reconsidered taking into account not only position of income tax but also on basis of terms and conditions of the employment of Directors. The petition requires consideration. Present petition stands disposed of with following direction - In the instant case also, we notice that the approach of the Tribunal is to abdicate its duty of deciding the matter on the merits or to retain the matter till the outcome of the pending matter before the Apex Court. This approach of Tribunal is not proper. We deem it appropriate to direct the Tribunal to decide the matter on merits. We further reserve liberty to the parties to raise all contentions as raised by both the sides before this Court. Let the same be decided without further loss of time.
Issues:
Petition under Articles 14, 19(1)(g), 265 and 300(A) of the Constitution of India - Remand order by the Tribunal - Applicability of M/s. PCM Cement Concrete Private Limited case - Proper adjudication of the issue - Observations of the Co-ordinate Bench - Disapproval of the Tribunal's approach - Direction for the Tribunal to decide the matter on merits. Analysis: The petitioners sought writs to quash an order by the Appellate Tribunal and prohibit any action against the Petitioner Company, pending final disposal. The Tribunal had remanded the matter to the Assessing Officer citing a pending case before the Supreme Court involving M/s. PCM Cement Concrete Private Limited. The petitioners argued that this case was not applicable to their situation. The Tribunal's remand was based on considering income tax and Directors' employment terms, but it was noted that remuneration to Directors was not chargeable to service tax. The Court found the Tribunal's remand approach improper, as settled by various decisions. The Co-ordinate Bench's observations emphasized the need to decide matters on merits or keep them pending until relevant decisions are made. The Court highlighted that the Tribunal's duty is to decide matters on merits as per the law. The Tribunal's approach of remanding cases instead of deciding on merit was strongly disapproved. The Court stressed that justice should not be reduced to mere statistics and criticized the Tribunal's disposal of appeals without resolving disputes. The Court directed the Tribunal to decide matters on merits and reserved liberty for parties to raise contentions. The judgment emphasized the statutory duty of the Tribunal to dispose of appeals on merits and not to jettison litigation improperly. In conclusion, the Court disposed of the present petition with a direction for the Tribunal to decide the matter on merits without further delay. The judgment clarified that the Court did not examine the merits of the case, emphasizing the importance of proper adjudication and avoiding unnecessary delays in legal proceedings.
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