By TIOL News Service

CHANDIGARH, JUNE 03, 2016: NETIZENS may recall the order of CESTAT reported in 2015-TIOL-613-CESTAT-DEL wherein cost was imposed on the Adjudicating Authority for passing non-speaking order. The amount was directed to be deposited to the Prime Minister's Relief fund. Revenue carried the matter before the High Court with the following questions of law:

(i) Whether CESTAT is empowered to impose cost on the adjudicating authority?

(ii) Whether direction to deposit cost into the PM National Relief Fund is proper when it is not voluntary?

After hearing both sides, the High Court held:

+ The Tribunal had recorded that the analysis of the adjudicating authority was nothing but verbatim reproduction of the submission of the appellant and no finding was recorded about the taxability of services and the analysis/discussions/findings of the adjudication are very shoddy. It had been highly and conspicuously nonspeaking, non-reasoned, arbitrary and cavalier while passing the order dated 28.2.2013. The adjudicating authority had passed the order without application of mind and such orders adversely and severely impinge upon the public trust in the public authorities. It was further recorded that a public authority is such circumstances while performing quasi-judicial function deserves to be put to costs. Accordingly, the Tribunal imposed the cost of Rs. 25,000/- on the adjudicating authority who passed the order in question.

+ No illegality or perversity could be pointed out in the aforesaid findings recorded by the Tribunal which may warrant interference by this Court. Accordingly, no substantial question of law arises in this appeal.

(See 2016-TIOL-1055-HC-P&H-ST)