2022 (2) TMI 1070 - HC - Central Excise

Rejection of refund claim - duty demand having been set aside by the Tribunal, the assessee then filed an application for refund on 28.12.2018 - HELD THAT - Perusal of the questions of law framed by the revenue in the present appeal do not, in any way, indicate any error on part of the Tribunal in passing the impugned order dated 19.02.2020. The question being raised appear to involve the merits of the earlier order of the Tribunal dated 26.07.2018. Those questions do not arise in this appeal. There are no merit in the appeal - appeal dismissed.

Summary

Issues involved:
Appeal under Section 35G of the Central Excise Act, 1944 against Tribunal's order granting refund - Dismissal of revenue's appeal by Tribunal - Technical objections raised by revenue - Merits of earlier Tribunal order - Questions of law framed by revenue - Dismissal of present appeal.

Analysis:

1. The appeal was filed by the revenue under Section 35G of the Central Excise Act, 1944 against the order of the Customs, Excise & Service Tax Appellate Tribunal, Allahabad Bench, pertaining to a Service Tax Appeal. The Tribunal had dismissed the revenue's appeal, stating that the balance refund claim was rejected by the Original Adjudicating Authority, and the subsequent show cause notice was decided in favor of the assessee, leading to the rejection of the revenue's appeal by the Tribunal.

2. Previously, a show cause notice had been issued to the assessee proposing a duty demand, which was confirmed by the adjudicating authority. However, this order was set aside by the Tribunal in a separate proceeding. Despite an appeal filed by the revenue against the Tribunal's order, there was no stay order in favor of the revenue. Subsequently, the assessee applied for a refund after the duty demand was set aside, which was partially granted by the adjudicating authority. The assessee appealed for the balance refund, which was allowed, leading to the revenue's appeal being dismissed by the Tribunal.

3. The revenue contended that the Tribunal wrongly allowed the assessee's appeal in a previous order, but the present case did not involve the merits of that matter. The Tribunal dismissed the revenue's appeal against the refund granted, stating that the objections raised were purely technical. The questions of law framed by the revenue in the present appeal did not indicate any error by the Tribunal in its decision. The Tribunal found no merit in the present appeal and accordingly dismissed it.

In conclusion, the High Court upheld the Tribunal's decision to dismiss the revenue's appeal against the refund granted to the assessee, emphasizing that the objections raised were technical in nature and did not warrant a reversal of the Tribunal's decision. The Court clarified that the present appeal did not involve the merits of the earlier Tribunal order and found no error in the Tribunal's decision-making process.