Bankuara Municipality vs. Commissioner Of CGST And Cx Bolpur Commissionerate And Ors

Held

The High Court allowed the appeal, setting aside the order of the Tribunal and the order of adjudication. The Court reasoned that while statutory mandates for time limits in appeals are generally followed, in this peculiar case, the appellant, being a local authority, should be granted an opportunity to argue their case on merits. The Court noted that the issues were recurring and the appellant had diligently contested the show cause notice. Therefore, the Court exercised discretion to allow the appeal to be heard on merits by the Commissioner of Appeals. The appeal was restored to the file of the Commissioner of Appeals, Bankura, with a direction to provide a personal hearing and pass an order on merits. The Court explicitly stated that this judgment would not be treated as a precedent and the substantial questions of law were left open.

Facts

The Bankura Municipality (appellant) filed an appeal before the Customs, Excise and Service Tax Appellate Tribunal (Tribunal) challenging an order of adjudication dated 24.08.2016. The Tribunal, by an order dated 19.06.2023, dismissed the appellant's appeal on the ground that it was filed beyond the period of limitation. The appellant is aggrieved by this dismissal and has filed the present appeal before the High Court. The appellant had previously filed an identical appeal in CEXA/9/2023, which was decided by the High Court on 13.12.2023.

Key Issues

1. Whether the Tribunal was justified in dismissing the appeal on the ground of limitation without deciding the merits of the case, as per Section 35G of the Central Excise Act, 1944? Petitioner's argument: The petitioner contended that the Tribunal erred by not considering the merits of the case and dismissing the appeal solely on the basis of limitation. They argued that this action violated the principles of natural justice, especially since the issues involved were recurring and had implications for previous and subsequent periods. Revenue's argument: The judgment records that the learned counsel for the respondent was heard, but their specific arguments regarding the limitation period or the merits of the case are not detailed.