The Hon’ble CESTAT, Delhi vide its order dated 23.03.2022 in the matter of Porteck India Info Services Pvt. Ltd. Vs  Commissioner of Central Goods & Service Tax & Central Excise in Service Tax Misc. Application No. 50009/2022 – Service Tax Appeal No. 50754 of 2020 (SM) directed the adjudicating authority to show cause as to why proceeding for contempt of court should not be drawn against him for not following the order of Tribunal or in alternate, to comply with the order of Tribunal and report compliance.

The Appellant/Applicant filed the miscellaneous application for compliance of the Final Order No.51875-51876/2021 dated 14.10.2021, where by the adjudicating authority was directed to grant refund with interest to the Applicant on the receipt of the order of the Tribunal.

Facts:

  • The refund claim of the Applicant was allowed by the Hon’ble CESTAT vide Final Order 51875-51876/2021 dated 14.10.2021 wherein the appeals filed by the Applicant was allowed and the adjudicating authority was directed to grant the refund with interest to the Applicant within 45 days of the receipt of the order.
  • That in pursuance of the Tribunals Final Order, the applicant approached the department for grant of refund and made representation on 10.2021 & 25.11.2021 in respect of the same.
  • However the Assistant Commissioner instead of granting the refund issued a show cause notice to the appellant/applicant proposing to disallow part of the amount on the grounds mentioned therein.

Held:

  • The Hon’ble CESTAT after considering the submissions made, found that the act of Assistant Commissioner of issuing the show cause notice instead of granting the refund, amounts to interference in the justice delivery system.
  • It seems that the Assistant Commissioner does not have regard for the order of the superior court/Tribunal and also does not have any concept of doctrine of merger.
  • The Hon’ble CESTAT with the above findings, directed the Assistant Commissioner to show cause as to why the contempt of court proceedings should not be drawn against him and referred to the jurisdictional High Court for further action or in alternate a last opportunity was granted to the Assistant Commissioner to comply with the order of Tribunal and report compliance for the same.
  • It was further directed to send the copy of order by email and speed post to the Assistant Commissioner and one copy to the Ld. Department Representative by hand for conveying the same to the concerned Assistant Commissioner.

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