The Principal Chief Commissioner Of CGST And Cx Commissionerate vs. Nilanjan Adhikary And Ors
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The Principal Chief Commissioner of CGST & CX, Kolkata Zone (Petitioner) assails an interlocutory order of the Tribunal dated August 13, 2026. This order directed the Respondent Department not to give effect to a transfer order dated August 7, 2026, concerning the Applicants before the Tribunal. The Applicants, originally from Central Excise, Chennai Zone, were transferred to Kolkata-II Central Excise Commissionerate as Inspectors in May 2017, agreeing to forgo seniority and serve anywhere within the Kolkata Zone. They were relieved from Chennai and reported to Kolkata. However, the August 7, 2026, transfer order sought to move them to various places in their parent zones, from which they had been disconnected for nearly nine years. The Tribunal initially stayed their transfer and later directed maintenance of status quo ante, allowing them to join their previous stations until the next hearing.
Held
The High Court, while normally disinclined to interfere with interlocutory orders, found itself balancing equities given the impending final hearing before the Tribunal. The Court noted that the Original Applicants had been relieved from service by the transfer order but had not yet joined their parent Commissionerates, which are located in various states. The Court acknowledged that the Petitioner Department had the option to either allow the Applicants to work and extract work from them until the Tribunal decides the Original Applications, or, if they did not wish to utilize their services, to maintain the status quo as existing on the date of the order and continue paying their salaries. The Court directed the Petitioner Department to file its Affidavit-in-Reply/Written Statement before the Tribunal by September 25, 2026, with copies served on the Original Applicants' counsel. Any Counter/Rejoinder Affidavit by the Applicants was to be filed by September 29, 2026. Both parties agreed to submit Written Notes of Arguments and conclude oral submissions before the Tribunal by September 30, 2026. All contentions of the parties were expressly kept open for the Tribunal's consideration. The Petition was disposed of by consent.
Key Issues
1. Whether the Tribunal erred in passing an interlocutory order directing the Petitioner Department not to give effect to the transfer order dated August 7, 2026, concerning the Original Applicants. Petitioner's Contention: The Petitioner, Principal Chief Commissioner of CGST & CX, Kolkata Zone, argues that the Tribunal's interlocutory order is assailable. They contend that the transfer of the Original Applicants to their parent Commissionerates is in accordance with the Circular dated September 20, 2018, which was sustained by the Supreme Court in Civil Appeal No. 1243 of 2022 (Sk. Nausad Rahaman & Ors. vs. Union of India & Ors.). The Petitioner seeks to assail the Tribunal's order staying the transfer. Respondent's Contention: The Respondent (Original Applicants before the Tribunal) approached the Tribunal seeking a stay on their transfer. The Tribunal, in its impugned order, stayed the transfer. The Respondent's agreement to the two options presented by the High Court indicates their willingness to abide by a resolution that balances their situation with the Department's operational needs.
Sections Cited
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Cause title — parties, addresses and appearances
Order
(Per Court)
The Petitioner is the Principal Chief Commissioner of CGST & CX, Kolkata Zone, who seeks to assail the Interlocutory Order passed by the *This order has been modified by speaking to the minutes of the order dated 28.09.2026*
2 Tribunal on 13.08.2026, by which, the Tribunal has held that the Respondent Department would not give effect to the order of transfer dated 07.08.2026, qua the Applicants before the Tribunal. The matter is now listed on 29.09.2026 under the heading ‘For Order’.
We are normally not inclined to interfere with an Interlocutory Order. The Original Applicants before the Tribunal, vide order dated 11.05.2017, were transferred to Central Excise Cadre Controlling Zone, Kolkata, as Inspectors on Inter-Commissionerate Transfer from Central Excise, Chennai Zone. On such transfers, all the Applicants were moved to Kolkata-II Central Excise Commissionerate. By such transfers by consent, they agreed to give up their seniority. They were liable to serve in any part of the State of West Bengal, Andaman & Nicobar Islands and Sikkim or in any part of the country, that may be included in the Central Excise Cadre Controlling Zone, Kolkata.
On relieving from Central Excise, Chennai Zone, they were reported to the Commissioner, Kolkata-II Central Excise Commissionerate. On transfer, they were disconnected from their previous zone, holding them ineligible for promotion in their previous zone. However, by the impugned *This order has been modified by speaking to the minutes of the order dated 28.09.2026*
3 order, challenged before the Tribunal, all of them have now been transferred to various places in their parent zones from where they were already disconnected and transferred to Kolkata-II Central Excise Commissionerate, almost 9 years ago.
The Applicants approached the Tribunal, which passed the impugned order on 13.08.2026, staying their transfer. However, the Tribunal has lost sight of the fact that the Original Applicants were relieved vide order dated 07.08.2026. When this was brought to the notice of the Tribunal, it passed the order dated 04.09.2026 on MA 783 of 2026, and directed that status quo ante should be maintained and the Applicants should be allowed to join their previous stations until the next date of hearing.
We have perused the verdict delivered by the Hon’ble Supreme Court dated 10.03.2022, in Civil Appeal No.1243 of 2022 (Sk. Nausad Rahaman & Ors. vs. Union of India & Ors.) a batch of various Civil Appeals. The Circular dated 20.09.2018 was sustained. It is canvassed before us on behalf of the Department that it is by virtue of the said Circular dated 20.09.2018, that the Original Applicants have now been repatriated to their parent Commissionerate. *This order has been modified by speaking to the minutes of the order dated 28.09.2026*
4
The learned Tribunal has scheduled the matter for hearing on 29.09.2026, which is just eight days from today. The Petitioner/Department before us, submits that Affidavit-in-Reply/Response to the Original Applicants filed by the Applicants would be tendered to the Tribunal on 29.09.2026 and copies would be supplied to the Applicants.
What we find today is that, by virtue of the transfer order, the Original Applicants have been relieved from service. On the other hand, they are yet to join their parent Commissionerate scattered in various States from where they traveled to the State of West Bengal/Commissionerate Zone, about 9 years ago by sacrificing their seniority and by being relegated to the lowest seniority post in the State of West Bengal. They are now sought to be repatriated to their parent Commissionerate.
In such a situation, since the final hearing is scheduled before the learned Tribunal, we are balancing equities by permitting the Chief Commissioner at Kolkata, to either allow the Applicants to work and extract work from them until the Tribunal decides the Original Applications, or, if they do not wish to extract work from them, status quo as existing today may *This order has been modified by speaking to the minutes of the order dated 28.09.2026*
5 be maintained and their salaries be paid to them. We keep these two options open to the Petitioner Department. The learned Advocate for the Original Applicants submits that they are agreeable to abide by any of these two options.
We direct that the Petitioner Department would file its Affidavit- in-Reply/Written Statement to the Original Applications before the Tribunal, on or before 25.09.2026 and copies would be served on the learned Advocate for the Original Applicants. In the event, the Original Applicants desire to file a Counter/Rejoinder Affidavit, let such Counter be filed on or before 29.09.2026. The parties are agreeable to tender their Written Notes of arguments, with case law, index and pagination, and advance oral submissions before the Tribunal and conclude such oral final submissions by 30.09.2026. We make it clear that all the contentions of all the parties are kept open in order to be considered by the Tribunal while delivering final orders in the Oas.
In view of the above, this Petition is disposed off by consent.
Parties are at liberty to act upon the order uploaded on the official website of the Calcutta High Court. (OM NARAYAN RAI , J.) (RAVINDRA V. GHUGE) Chief Justice *This order has been modified by speaking to the minutes of the order dated 28.09.2026*
Reproduced from the public record of the Calcutta High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.