2018 (9) TMI 1152 - HC - Customs

Jurisdiction - power of DRI to issue SCN - Held that - Once the legal issue, which is subject matter of appeal before the Tribunal, is pending consideration before Hon'ble the Supreme Court, the Tribunal itself should have decided the cases on merits after the decision of Hon'ble the Supreme Court instead of remanding those cases back to the Adjudicating Authority. The impugned order passed by the Tribunal is set aside. The matter is remitted back to the Tribunal to be decided on merits after decision of Hon'ble the Supreme Court in Mangali Impex Limited's case - appeal allowed by way of remand.

Summary

Issues:
- Appeal against order of Customs, Excise and Service Tax Appellate Tribunal setting aside Commissioner's order and remitting case back.
- Tribunal's decision to remand case back to Adjudicating Authority.
- Legal issue pending consideration before Supreme Court.
- Stay on operation of Delhi High Court judgment.
- Appropriate course of action by Tribunal in such cases.

Analysis:
The High Court heard an appeal against the Customs, Excise and Service Tax Appellate Tribunal's order setting aside the Commissioner's decision and remitting the case back to the Adjudicating Authority for fresh consideration. The Revenue contended that the Tribunal erred in remanding the case when the legal issue was pending before the Supreme Court, citing the judgment in Mangali Impex Limited vs Union of India. The Revenue argued that the Tribunal should have decided the case on merits after the Supreme Court's decision instead of sending it back to the Adjudicating Authority. Reference was made to a Delhi High Court order staying the operation of the judgment in Mangali Impex Limited's case. The High Court agreed with the Revenue's submissions, noting that the Tribunal's approach seemed to dispose of cases without proper consideration and that more than 50 cases were similarly disposed of. Therefore, the High Court allowed the appeal, set aside the Tribunal's order, and remitted the matter back to the Tribunal for a decision on merits after the Supreme Court's decision in Mangali Impex Limited's case, granting the assessee the liberty to challenge the order if aggrieved.

This case involved the issue of the Tribunal's decision to remand a case back to the Adjudicating Authority despite the legal issue being pending before the Supreme Court. The High Court emphasized the importance of deciding cases on merits after the Supreme Court's decision rather than sending them back for fresh consideration. The Court criticized the Tribunal's approach of disposing of cases without proper application of mind and highlighted the need to avoid such practices. The High Court also considered the stay on the operation of the Delhi High Court judgment related to the legal issue in question. Ultimately, the High Court allowed the appeal, set aside the Tribunal's order, and directed the Tribunal to decide the matter on merits after the Supreme Court's decision, granting the assessee the right to challenge the order if dissatisfied.