2018 (3) TMI 656 - HC - Customs

Principles of Natural justice - Tribunal has neither adverted to any of the contentions urged by either of the parties nor has it given reasons for concluding that the appeals are only liable to be dismissed - Held that - the order is vitiated for non-application of mind and failure to deal with the contention of the parties. In such circumstances, the only order that can be passed in these appeals is to set aside the order impugned and remit the matter for fresh consideration by the Tribunal - appeals filed by the appellants will stand restored to the file of the Tribunal.

Summary

Issues: Appeal against order of Customs, Excise & Service Tax Appellate Tribunal - Non-application of mind and failure to deal with contentions - Entitlement to claim refund without challenging assessment order - Fresh consideration by Tribunal required.

Analysis:

1. Appeal against Tribunal's Order:
The High Court heard the appellant's counsel and the Standing Counsel for the respondents regarding the appeals filed against the order of the Customs, Excise & Service Tax Appellate Tribunal. The Tribunal had dismissed the appeals filed by the appellant, upholding the orders impugned before it. The High Court noted that the Tribunal did not consider the contentions of either party or provide reasons for dismissing the appeals, indicating a lack of application of mind. Consequently, the High Court set aside the impugned orders and directed the Tribunal to conduct a fresh hearing, considering the arguments put forth by the parties and providing reasons for its conclusions.

2. Entitlement to Claim Refund:
The Tribunal's decision was based on the premise that the appellants were not entitled to claim a refund because they had not challenged the assessment order. The Tribunal held that the judgment cited by the appellant was not applicable to the case's circumstances. However, the High Court found that the Tribunal failed to address the contentions raised by both parties adequately. The High Court emphasized that the Tribunal's failure to engage with the arguments presented by the parties led to a flawed decision. As a result, the High Court concluded that a fresh consideration of the appeals by the Tribunal was necessary to ensure a fair and reasoned outcome.

3. Fresh Consideration by Tribunal:
In light of the deficiencies in the Tribunal's order, the High Court set aside the impugned orders and directed that the appeals be restored to the Tribunal's file for fresh consideration. The High Court instructed the Tribunal to conduct a new hearing, taking into account the contentions raised by the parties and providing detailed reasons for its conclusions. By remitting the matter for fresh consideration, the High Court aimed to rectify the lack of proper analysis and reasoning in the Tribunal's initial decision. Ultimately, the High Court disposed of the appeals with the directive for a fresh adjudication by the Tribunal.