By TIOL News Service

MUMBAI, MAR 28, 2017: IN the words of the High Court -

"On 11th July 2014 - 2014-TIOL-3194-CESTAT-MUM the tribunal allowed the respondent-assessee's appeal. The assessee's appeal, allowed by the tribunal, arose out of the order-in-original dated 16th January 2012 of the Commissioner of Central Excise, Thane-I. The issue pertains to availment of certain input services and whether the manufacturer of excisable goods can avail the input service credit in course of his/her business activity pertaining to the specific services set out in para 2 of the tribunal's impugned order. The tribunal initially thought that this was a matter requiring detailed consideration. Suddenly, it took it up and without indicating in any manner whether both sides concede that it is covered by a judgment of this court in the case of Commissioner of Central Excise, Nagpur vs. Ultratech Cement Ltd. = 2010-TIOL-745-HC-MUM-ST allowed it. If it allowed it contrary to the argument of the Revenue in opposition, then, which of the services and indicated in para 2 are identical to the services which were rendered in the Ultratech Cement Ltd. (supra) has not been clarified by the tribunal. All that the tribunal holds is that it is not disputed that the assessee being the manufacturer has availed of the services in the course of its business. Therefore, it is entitled to input service credit of all the services."

Revenue is in appeal against this order submitting that the matter covered by the judgment in Ultratech Cement Ltd.(supra) dealt with a specific service, namely outdoor catering service.

Noting that the tribunal has decided the appeal by a cryptic order, the Revenue appeal was admitted by the High Court and the substantial questions of law were framed.

The High Court further opined that instead of the court rendering any final decision, interest of justice would be served if the unreasoned order of the Tribunal is quashed and set aside.

The appeal was restored back to the file of the tribunal for a decision afresh in accordance with law uninfluenced by any earlier conclusion.

The Revenue appeal was allowed accordingly.

(See 2017-TIOL-587-HC-MUM-CX)