Commissioner Of Central G.S.T. And Central Excise J And K Jammu vs. Insecticides INDIA LTD.

Held

The Court allowed the application in MCC No. 114/2019, dispensing with the need for a certified copy of the impugned order. In CEA No. 89/2019, the Court noted that the issue is pending consideration in LPAOW No.123/2011 and that an interim order had previously been granted in favour of the revenue. The Court issued notice to the respondent to show cause why the appeal should not be admitted. Pending further orders, the Court directed that subject to the appellant releasing 50% of the amount due as per the CESTAT judgment dated September 4, 2018, and furnishing solvent surety to the satisfaction of the Jurisdictional Commissioner within four weeks, the recovery of the remaining amount claimed as refunded by the respondent would be stayed. The ratio is that interim relief in tax matters can be granted upon partial compliance and furnishing of security, especially when the core issue is sub-judice.

Facts

This matter involves appeals before the High Court of Jammu and Kashmir. MCC No. 114/2019 concerns an application to dispense with the certified copy of an impugned order, which was allowed. CEA No. 89/2019, filed by the Commissioner of Central GST & Central Excise against Insecticides India Ltd., raises an issue that is subject to consideration in another pending appeal (LPAOW No.123/2011). The revenue had previously obtained an interim order in its favour based on a Supreme Court order. The High Court issued notice to the respondent and directed the appellant to release 50% of the amount due as per a CESTAT judgment dated September 4, 2018, in exchange for a stay on the remaining refund amount, subject to furnishing solvent surety.

Key Issues

1. Whether the interim order issued in favour of the revenue in CEA No. 89/2019, based on a Supreme Court order in Special Leave to Appeal (Civil) No.28194-28201/2010, should be continued pending the final decision in LPAOW No.123/2011. Petitioner/Appellant (Commissioner of Central GST & Central Excise) argued that the issue is already under consideration in a connected matter and an interim order was previously granted in their favour. They relied on the Supreme Court's order in SLP (Civil) No.28194-28201/2010. Respondent (Insecticides India Ltd.) did not present arguments as recorded in the judgment regarding the stay of the refund amount. The court's direction for releasing 50% of the amount and furnishing surety suggests a balancing of interests pending the final adjudication.