M/S Batra Henlay Cables vs. Chief Commissioner Of GST, New Delhi And Anr
Facts
The petitioner, M/s Batra Henlay Cables, filed a writ petition before the Delhi High Court seeking a mandamus to direct the respondents (Chief Commissioner of GST, New Delhi and another) to grant a refund of interest. This refund was to be in compliance with the Final Order No. 52118/2021 dated 05.01.2022 passed by the Customs, Excise and Service Tax Appellate Tribunal (CESTAT). The respondents, represented by their counsel, conceded that the prayer sought by the petitioner was required to be granted. They further stated that they had also preferred an appeal against the CESTAT order but had withdrawn it due to a low tax effect. Consequently, the CESTAT order had become final.
Held
The Court held that the Final Order No. 52118/2021 dated 05.01.2022 passed by the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) had become final. This was because the respondents, who had also preferred an appeal against the said order, had withdrawn it. The Court directed the respondents to comply with the CESTAT order and grant the refund of interest as prayed by the petitioner. The reasoning was based on the concession made by the respondents' counsel that the prayer was required to be granted and the fact that the CESTAT order was no longer under challenge by the revenue. The ratio decidendi is that once an appellate tribunal's order becomes final due to the withdrawal of an appeal by a party, the other party is entitled to its compliance, and the revenue cannot resist such compliance on grounds that were implicitly abandoned by withdrawing their appeal.
Key Issues
1. Whether the respondents are obligated to grant the refund of interest to the petitioner in compliance with the Final Order No. 52118/2021 dated 05.01.2022 passed by CESTAT, considering the respondents' withdrawal of their own appeal against the said order. The petitioner argued that the CESTAT order, having become final due to the respondents' withdrawal of their appeal, should be complied with, and the refund of interest should be granted. The respondents, through their counsel, conceded that the prayer sought by the petitioner was required to be granted. They acknowledged that their own appeal against the CESTAT order was withdrawn due to low tax effect, thereby rendering the CESTAT order final and binding.
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Cause title — parties, addresses and appearances
O R D E R % 30.11.2022
The petitioner has filed the present petition, inter alia, praying as under: “(i) Issue a writ of mandamus or any other appropriate writ, order or direction directing the respondents to forthwith grant refund of interest as applicable to the petitioner in compliance with the Final Order No. 52118/2021 dated 05.01.2022 passed by the Customs, Excise and Service Tax Appellate Tribunal, New Delhi In Excise Appeal No. E/50432/2021-Ex (SM) filed by the petitioner herein;
Mr. Harpreet Singh, learned counsel appearing for the respondents fairly states that the prayer sought for is required to be granted as the respondents had also preferred an appeal against the final order No.52118/2021 dated 05.01.2022 passed by the Customs Excise & Service Tax Appellate Tribunal (CESTAT). The respondents could n
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