2025 (6) TMI 1510 - SCH - Service Tax

Maintainability of appeal - stay order passed by High Court - High Court has recorded that both the Writ Petition and the Appeal are disposed of as not pressed with liberty to the respondent to prefer Appeal before the Supreme Court the High Court has stayed the direction of CESTAT for refund for a period of eight weeks - HELD THAT - Prima facie the High Court could not have passed the order of stay after holding the Appeal to be not maintainable and after recording that the Writ Petition and the Appeal are disposed of as not pressed. Issue notice returnable within six weeks. In the meanwhile impugned order of the High Court dated 12.06.2025 shall remain stayed. This order shall however not preclude the respondent from filing Appeal before this Court under Section 35-L of the Central Excise Act 1944 if not already filed which shall be decided on its own merits and/or limitation.

Summary

Summary:The Supreme Court of India, through a Partial Court Working Days Bench comprising Hon'ble Justices Ujjal Bhuyan and Manmohan, addressed a matter involving an appeal under Section 35-G of the Central Excise Act, 1944. The appeal challenged the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Mumbai's order dated 24.01.2025, which allowed the petitioner's Service Tax Appeal. Subsequently, a Service Tax Miscellaneous Application for release of funds was granted by CESTAT under Rule 41 of the CESTAT (Procedure) Rules, 1982, providing four weeks to the Revenue to comply.The High Court held the appeal as "not maintainable," disposed of both the writ petition and appeal "as not pressed," but stayed the refund direction from CESTAT for eight weeks. The Supreme Court observed that "prima facie, the High Court could not have passed the order of stay after holding the Appeal to be not maintainable and after recording that the Writ Petition and the Appeal are disposed of as not pressed." Accordingly, the Supreme Court issued notice returnable in six weeks and stayed the High Court's impugned order dated 12.06.2025.The Court clarified that this stay "shall not preclude the respondent from filing Appeal before this Court under Section 35-L of the Central Excise Act, 1944," which will be decided on merits and/or limitation, with no opinion expressed at this stage. The hearing was advanced to 02.07.2025 on the prayer of the learned ASG.