AIMS Industries Limited Vs Commissioner of CGST & Central Excise (CESTAT Ahmedabad)
CESTAT Ahmedabad allowed the appeal filed by AIMS Industries Limited and remanded the matter to the Commissioner (Appeals) for fresh adjudication after providing an opportunity to rectify procedural defects and hearing the case on merits. The dispute concerned service tax demand of ₹4,88,712 on retention or detention charges collected by the appellant from customers for delayed return of gas cylinders supplied along with industrial gas. The Department treated such charges as consideration for “Supply of Tangible Goods Service” under the Finance Act, 1994. The appellant argued that the cylinders remained under the effective control and possession of customers during the retention period and that the charges were merely to discourage unnecessary blocking of its assets. The appellant also relied on earlier decisions in its favour and other judicial precedents involving similar issues.
However, the Commissioner (Appeals) dismissed the appeal on technical grounds without examining the merits. The defects noted included absence of complete contact details, lack of proper disclosure of the authorized signatory’s designation, deficiencies in authorization documents, and inconsistencies in the appeal papers regarding the adjudicating authority. The Commissioner (Appeals) also noted that the appellant’s advocate had requested disposal without personal hearing despite multiple hearing dates being fixed.
