By TIOL News Service

CHENNAI, JAN 08, 2015: PETITIONER received show cause notice from Joint Commissioner. Petitioner submitted reply without dealing with the merits of the matter but relying on Order in Appeal passed by Commissioner (Appeals) in favour of the petitioner on the very same issue in respect of earlier clearance for the Petitioner. Respondent - Joint Commissioner proceeded to pass impugned order by referring to two orders, where one order relied on by the Respondent was stayed by the CESTAT and the other order was reversed by the Commissioner (Appeals). The order passed by the Joint Commissioner is under challenge.

Though the petitioner has to exhaust the appeal remedy, the High Court got convinced that the petitioner need not have approached the appellate authority, since the impugned order is vitiated with an error apparent on the face of the record and impugned order was the outcome of total non - application of mind and utter disregard to the order passed by the Commissioner (Appeals) and stay was granted by the CESTAT.

The High Court observed that the manner in which impugned order was passed by the respondent cannot be appreciated. The Court further held that the impugned order has been passed on account of sheer non-application of mind and based on irrelevant consideration. Accordingly, the High Court quashed the impugned order and directed the respondent to hear the petitioner and pass reasoned orders on merits and in accordance with law. The Court further held that the petitioner need not file an appeal against the impugned order.

(See 2015-TIOL-58-HC-MAD-CX)