Speaking and Reasoned order should be passed

PJ/Case Laws/2010-11/1046

Case: Commissioner of C. Ex. & Cus., Rajkot v/s Amul Industries P. Ltd.

Citation: 2010 (260) ELT 499 (SC)

Issue:- Order should contain reasons for rejecting the appeal and should be a speaking order.

Brief Facts:- The issue involved was availability of Cenvat credit. In appeal, the High Court disposed of the appeal by recording that the Revenue had failed to show us that for eligibility to avail credit of duty, it is necessary that the assessee should have its own plant and machinery.

Against the said decision, Revenue is in appeal before the Supreme Court.

Appellant’s Contentions:- Apart from submitting that the impugned order is not sustainable on merit, Revenue submitted that the order passed by the High Court was without reason.

Reasoning of Judgment:- The Supreme Court perused the judgment of the High Court and concluded that the same is devoid of any reason. There is no discussion on the issues involved. It was held that there was no discussion at all on the issues involved.

It was observed that what the High Court was called upon to do was to dispose of an appeal and necessarily therefore it was expected that the issues involved in the appeal should have been discussed threadbare and after such discussion findings were required to be recorded and thereafter only conclusion could have been recorded.

The Supreme Court held that the High court except for referring to the provisions of the Act and also quoting a portion of the order of the Tribunal did not venture upon any discussion at all and only by recording one sentence as its conclusion disposed of the entire appeal. This was not proper disposal of the appeal and the High Court failed to discharge its responsibility of recording reasons before recording its conclusions while disposing of an appeal.

Consequently, impugned judgment set aside and matter remitted back the appeal to the High Court for fresh consideration in accordance with law. It was stated that while doing so all the issues raised in the appeal should be considered and dealt with by giving reasons for its decision.

The High Court is also requested to dispose of the appeal as expeditiously as possible.

Decision:- Matter remitted back to High Court.

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PJ/Case Laws/2010-11/1046

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