Order Date – 07 January 2023

Parties: M/S AIA ENGINEERING LTD. Vs UNION OF INDIA

Facts –

• The Petitioner, M/s AIA Engineering Ltd., is engaged in the business of manufacture of machinery and parts There were unutilised Cenvat credit of Krishi Kalyan Cess (KKC) aggregating Rs.43,61,383/- was recorded in the Cenvat register and the returns at the time of implementing GST.
• The refund claim was rejected by the Tribunal and remanded the matter to the Assessing Officer that the pending matter before the Apex Court being a case of M/s. Bombay Dyeing and Manufacturing Company Limited vs. Commissioner of Central Excise has no applicability.

Issue –

• Whether the Tribunal is justified in remanding the matter to the Assessing Officer?

Order –

• The divisional bench of Hon’ble High Court observed that the matter is still pending before the Apex Court and has not been finally decided. The approach of the Tribunal to abdicate its duty of deciding the matter on the merits or to retain the matter till the outcome of the pending matter before the Apex Court.
• It was held that the very issue was decided by this Court in in case of Commissioner, Central GST and Central Excise Vadodara-II vs. M/s.Meghmani Finchem Ltd., by strongly disapproving this approach on the part of the Tribunal as “Dispensation of justice is not number games and should not be brought down to mere statistics. This disposal is also not final and is open to reopening of all the issues. This would lead to multiplicity of proceedings.”
• Thus, it is appropriate that the Tribunal, which is otherwise required to decide the matter on merit, shall decide the same keeping all contentions raised by both the sides before this Court and before the Tribunal open for them to agitate, let the same be decided without further loss of time.
• Writ petition is disposed of.