Kohler India Corporation Pvt Ltd Vs Commissioner of Central Excise and Service Tax – CGST & Central Excise Vadodara-II (CESTAT Ahmedabad)
The issue has been considered and directed to be decided by the Tribunal in the earlier round of litigation. It holds that consecutive hearing dates in the same month is no effective hearing. Hence, directs the Ld. commissioner to pass order in two months.
The appellant is a leading manufacturer of ceramic and other bathroom fittings. It received certain input services used for construction of factory building. Credit was denied on the ground that there is no excise duty paid on the said building (immovable property). Demands were confirmed. On appeal, the Hon’ble CESTAT remanded the matter back to the commissioner for passing an order considering the law has been settled by the High courts. However, yet again, same order came to be passed. Hence, appeal before the Hon’ble CESTAT.
The Hon’ble CESTAT, Ahmedabad allows the appeal and remands the matter back to the commissioner. It lambasts the Ld. Commissioner for passing verbatim order and not following earlier remand directions. It refers to the Hon’ble Supreme Court judgment in the case of Kamlakshi Finance holding that decision of higher authorities are binding on lower authorities. It holds that the issue has been considered and directed to be decided by the Tribunal in the earlier round of litigation. It holds that consecutive hearing dates in the same month is no effective hearing. Hence, directs the Ld. commissioner to pass order in two months.
