2021 (7) TMI 648 - HC - Service Tax

Validity of appellate order - applicability of decision in the case of M/S ICS FOOD PVT. LTD. VERSUS COMMISSIONER OF SERVICE TAX, NOIDA 2018 (7) TMI 1061 - CESTAT ALLAHABAD - the department had elected to carry the said order in an appeal before the Supreme Court and hence the said decision had not attained finality - HELD THAT - There are no reason to relegate the petitioner to the appellate remedy at this stage. In our opinion, interest of justice would be sufficiently served if a limited remand is ordered to the Commissioner (Appeals-III) for revisiting his decision based on the circumstance that the decision of the Customs, Excise and Service Tax Appellate Tribunal in M/S ICS FOOD PVT. LTD. VERSUS COMMISSIONER OF SERVICE TAX, NOIDA 2018 (7) TMI 1061 - CESTAT ALLAHABAD has since attained finality. If indeed the said decision has applicability to the facts and enures to the benefit of the petitioner, the Commissioner (Appeals-III) shall be at liberty to pass an appropriate order reversing his earlier decision which is impugned. Petition disposed off.

Summary

Issues:
Challenge to appellate order based on non-binding nature of a previous decision due to appeal to Supreme Court, Finality of decision by Customs, Excise and Service Tax Appellate Tribunal, Relegation to appellate remedy, Limited remand to Commissioner (Appeals-III) for revisiting decision.

Analysis:
The judgment deals with a writ petition challenging an appellate order based on the contention that the Appellate Authority did not consider a previous decision by the Customs, Excise and Service Tax Appellate Tribunal, as the department had appealed the decision to the Supreme Court. The petitioner argued that the Supreme Court had dismissed the appeal, making the previous decision final. The respondents acknowledged the finality of the Tribunal's decision but suggested the petitioner could appeal to the Additional Secretary. The Court decided not to relegate the petitioner to the appellate remedy immediately. Instead, a limited remand was ordered to the Commissioner (Appeals-III) to reconsider the decision in light of the finality of the Tribunal's decision. If the previous decision benefits the petitioner, the Commissioner can reverse the earlier decision; otherwise, a fresh order can be passed, after which the petitioner can pursue the appellate remedy before the Additional Secretary.

The Court emphasized that the interest of justice would be served by the limited remand to the Commissioner (Appeals-III) to ensure a fair consideration of the final decision by the Customs, Excise and Service Tax Appellate Tribunal. The judgment disposed of the writ petition with no costs and kept all contentions on merits open for the remand process. The Commissioner (Appeals-III) was directed to make efforts to pass an order upon remand promptly, preferably within one month. The judgment focused on the need for a fair reconsideration of the decision in light of the finality of the Tribunal's decision, balancing the interests of all parties involved in the dispute.