Commissioner Of Central GST And Central Excise , J And K vs. Cadila Pharmaceuticals PVT. LTD.

Held

The Court decided to issue notice to the respondent (Cadila Pharmaceuticals Ltd.) to show cause as to why the appeal should not be admitted for hearing. This indicates that the Court has not yet admitted the appeal on merits. Pending the final decision on admission, the Court granted an interim relief. The revenue (appellant) is directed to release 50% of the amount due to the respondent as per the impugned CESTAT judgment. This release is conditional upon the respondent furnishing a solvent surety to the satisfaction of the Jurisdictional Commissioner for the remaining amount claimed as refund. The stay on the remaining amount claimed as refund by the respondent is subject to this condition. The Court has not decided the substantive issues of the appeal at this stage, focusing on procedural aspects and interim measures. The ratio for the interim order is to balance the interests of both parties pending final adjudication, ensuring a portion of the disputed amount is released while securing the revenue's interest in the balance.

Facts

The Commissioner of GST and Central Excise, J&K, is the appellant in CEA No. 20/2018, appealing an order dated March 20, 2018, passed by the Customs, Excise & Service Tax Appellate Tribunal (CESTAT). The respondent is Cadila Pharmaceuticals Ltd. The appeal concerns an amount claimed as refund by the respondent. The High Court noted that the issue is subject to consideration in LPAOW No. 123/2011. An interim order had previously been issued in favour of the revenue, relying on a Supreme Court order. The Court directed the appellant to issue notice to show cause why the appeal should not be admitted. Additionally, an interim direction was issued: the appellant must release 50% of the amount due to them as per the CESTAT judgment, subject to furnishing solvent surety for the remaining amount claimed as refund by the respondent.

Key Issues

1. Whether the appeal should be admitted for hearing, considering it involves an issue pending in LPAOW No. 123/2011. Petitioner's Arguments: The petitioner (Commissioner of GST and Central Excise) seeks admission of the appeal. They rely on a Supreme Court order in Special Leave to Appeal (Civil) No. 28194-28201/2010, which led to an interim order in their favour previously. Respondent's Arguments: The respondent (Cadila Pharmaceuticals Ltd.) is to be issued notice to show cause why the appeal should not be admitted. No specific arguments for the respondent are recorded at this stage regarding the admission of the appeal.