75th Founding Day Lecture Meeting on “India@2030” Know More

December 2015

The adjudicating authority has to follow the order of Larger Bench unless the factual situation of the case calls for different interpretation of law.

By Puloma Dalal
Jayesh Gogri
Mandar Telang, Chartered Accountants
Reading Time 1 mins
fiogf49gjkf0d
33. 2015 (40) STR 26 (Ker) Muthoot Finance Ltd. vs. Union of India.

The adjudicating authority has to follow the order of Larger Bench unless the factual situation of the case calls for different interpretation of law.

Facts

The Appellant is engaged in providing service on behalf of Western Union, a company having its operation outside India. A similar issue arose earlier, which was settled by Larger Bench of the Tribunal in case of Muthoot Finance Ltd vs. Commissioner of C. Ex, Chandigarh, 2013(29) STR (257) (Tri-Delhi) in Appellant’s favour. It was contended that the department should follow the order of the Tribunal before raising demand against them when the facts of the case were similar. However, no cognisance was taken of the said order and demand was confirmed.

Held

The High Court observed that no distinction on facts is made in the Order-In-Original. Therefore, it is held that the order already passed by the Larger Bench of the Tribunal is binding on adjudicating authority to follow unless the factual situation calls for different interpretation. Accordingly, quashing the demand, the department was directed to consider matter afresh.

Download PDF

You May Also Like

Service tax is leviable on all lease rent whether of short tenure or of more than 90 years. The service provided by assesse is not sovereign service and no statutory fees are levied on the same, thus it is a taxable service.

CENVAT credit of construction services and lease rental service can be availed against payment of duty or manufacture of final product for period prior to amendment of definition of input service under Rule 2(l).