City And Industrial Development Corporation Of Maharashtra LTD. vs. Commissioner CGST And Central Excise Belapur Commissionerate

Held

The Court held that the miscellaneous order dated 22nd July, 2022, passed by the CESTAT, did not necessitate any further orders or modifications to the High Court's order dated 11th November, 2022. The Court reasoned that the first sentence of paragraph 5 of the CESTAT's miscellaneous order reiterated the difference of opinion between the judicial and technical members. This fundamental disagreement meant that the High Court's previous order, which was based on this context, would continue to apply. The ratio decidendi is that a subsequent order by a tribunal that merely clarifies or substitutes parts of a previous order without altering the core dissenting opinion does not invalidate or require modification of a High Court's judgment that considered that dissenting opinion. The Court clarified that its order dated 11th November, 2022, quashed the impugned order only in Service Tax Appeal No. 89766 of 2013, as other appeals had been settled independently by the Petitioner.

Facts

The Petitioner, City and Industrial Development Corporation of Maharashtra Ltd., filed a writ petition before the Bombay High Court. The Respondent is the Commissioner CGST and Central Excise, Belapur Commissionerate. The Petitioner brought to the Court's notice a miscellaneous order dated 22nd July, 2022, passed by the CESTAT in an application moved by the Commissioner of Service Tax, Mumbai-II. This CESTAT order substituted certain paragraphs of an earlier order dated 5th August, 2019, but did not alter the dissenting order of the judicial member. The Petitioner contended that this CESTAT order did not change the reasons or conclusions of the High Court's previous order dated 11th November, 2022. The Court considered the CESTAT order and agreed that its previous order would continue to apply.

Key Issues

1. Whether the miscellaneous order dated 22nd July, 2022, passed by the CESTAT, necessitates any change to the High Court's order dated 11th November, 2022, in Writ Petition No. 1696 of 2021, concerning the Petitioner (City and Industrial Development Corporation of Maharashtra Ltd.) and the Respondent (Commissioner CGST and Central Excise, Belapur Commissionerate)? Petitioner's Contention: The Petitioner argued that the CESTAT's miscellaneous order, while substituting certain paragraphs of an earlier order, did not alter the dissenting opinion of the judicial member and therefore would not change the reasons or conclusions of the High Court's order dated 11th November, 2022. The Petitioner relied on the fact that the core dissenting opinion remained unchanged. Respondent's Contention: The Respondent did not explicitly argue against the Petitioner's submission regarding the impact of the CESTAT order. However, at the Respondent's request, the Court clarified the scope of its order dated 11th November, 2022.