Commissioner of Central Excise Vs Saravana Alloys Steel Pvt. Ltd. (Supreme Court of India)
The Supreme Court of India has set aside a decade-old order from the Karnataka High Court, reinstating a tax appeal for Saravana Alloys Steel Pvt. Ltd. The case originated from a Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) order from February 2011, which the company challenged. The Karnataka High Court had dismissed the company’s appeal in 2014, deeming it non-maintainable under Section 35-G of the Central Excise Act and stating that the appeal should have been filed directly with the Supreme Court under Section 35-L.
However, a subsequent Supreme Court precedent in Commissioner of Central Excise, Bhavnagar v. Fact Paper Mills Private Limited established that appeals concerning “clandestine removal” of goods are not maintainable under Section 35-L. This left Saravana Alloys Steel with no legal recourse.
Recognizing that the company was left without a remedy due to this jurisdictional confusion, the Supreme Court invoked its extraordinary powers under Article 142 of the Constitution. This article allows the Court to pass any decree or order necessary for “doing complete justice.” In this instance, the Court set aside the High Court’s 2014 order and restored the appeals to their original numbers on the High Court’s docket, directing the court to decide the case on its merits. This action ensures that the company’s appeal will be heard, and it underscores the Court’s commitment to ensuring that jurisdictional technicalities do not prevent a party from receiving a fair hearing.
