M/S Fosroc Chemicals (INDIA) PVT LTD vs. The Commissioner Of Central Tax

Facts

The appellant, M/s Fosroc Chemicals (India) Pvt. Ltd., filed an appeal before the Karnataka High Court against an order dated January 16, 2018, passed by the Customs, Excise and Service Tax Appellate Tribunal (CESTAT). The appeal was admitted on a substantial question of law concerning whether the Tribunal erred in not considering the High Court's judgment in CCE vs. Ecof Industries Pvt. Ltd. The revenue was represented by the Commissioner of Central Tax. The specific tax periods and the amount in dispute are not recorded in the judgment. The procedural history involves the CESTAT passing the impugned order, which is now under challenge before the High Court.

Held

The Court held that for the reasons assigned in a detailed judgment passed in a connected appeal (CEA.No.33/2018), the substantial question of law involved in this appeal is also answered in favour of the appellant. Consequently, the order dated January 16, 2018, passed by the Appellate Tribunal is quashed. The matter is remitted back to the Tribunal for a fresh decision in accordance with the law. The Court explicitly stated that it has not expressed any opinion on the merits of the claim of the parties. The Tribunal is directed to decide the appeal expeditiously, with parties undertaking to appear before it on April 26, 2021.

Key Issues

1. Whether the Hon'ble Tribunal has erred in not considering the law laid down by this jurisdictional High Court in the case of CCE vs. ECOF Industries Pvt. Ltd., 2011 (271) ELT 58 (Kar)? The appellant contended that the Tribunal failed to consider a relevant precedent from the jurisdictional High Court. The revenue's arguments are not recorded in the judgment. The issue hinges on the application of the principle laid down in the cited case by the High Court to the facts before the Tribunal.