Commissioner of CGST and Cx Vs Rustech Products Private Limited (Calcutta High Court)
Calcutta High Court addressed an appeal under Section 35G of the Central Excise Act, challenging the Customs, Central Excise and Service Tax Appellate Tribunal’s order dated October 13, 2023. The Tribunal had allowed the respondent’s appeal, relying on the Gujarat High Court’s decision in Indsur Global Ltd. vs. Union of India, which was later stayed by the Supreme Court. The revenue’s appeal raised questions about the Tribunal’s adherence to Rule 8(3A) of the Central Excise Rules, its obligation to address the merits of the case, and the impact of the Supreme Court’s stay on the Tribunal’s decision. The High Court found that the Tribunal’s order could not stand due to the ongoing stay and previous rulings. Consequently, the High Court set aside the Tribunal’s decision and remanded the case for reconsideration after the Supreme Court’s final judgment. The substantial legal questions raised in the appeal remain unresolved, and the matter will be revisited by the Tribunal once the Supreme Court renders its judgment.
FULL TEXT OF THE JUDGMENT/ORDER OF CALCUTTA HIGH COURT
The Court :- This appeal by the revenue filed under Section 35G of the Central Excise Act, 1944 (the Act) is directed against the order dated 13.10.2023 passed by the Learned Customs, Central Excise and Service Tax Appellate Tribunal, East Zonal Bench, Kolkata, in Excise Appeal No. 78314 of 2018. The revenue has suggested the following substantial questions of law for consideration :-
i. Whether the Learned Tribunal has committed gross error of law by rejecting the appeal of the department by not appreciating the provision of Rule 8(3A) of the Central Excise Rule, 2002 ?
ii. Whether the Learned Tribunal is required under the law to hear the appeal on merits or not ?
iii. Whether the Hon’ble Supreme Court has granted stay of the order of the Hon’ble Gujarat High Court in the said issue in the case of Indsur Global Limited vs. Union of India, therefore, rejection of Appeal by the Learned Tribunal is correct or not ?
We have heard the learned Counsel for the appellant.
