COMMISSIONER OF SERVICE TAX Vs. ASSOCIATED HOTELS LTD.

JUDGEMENT

(1.) Revenue has challenged the judgment of the Customs, Excise and Service Tax Appellate Tribunal dated 5-9-2013 raising following question for our consideration:

(2.) Section 85 of the Finance Act, 1994 pertains to appeals to the Commissioner of Central Excise (Appeals). Sub-section (1) thereof provides that any person aggrieved by any decision or order passed by an adjudicating authority subordinate to the Commissioner of Central Excise may appeal to the Commissioner of Central Excise (Appeals). Sub-section (3) provides for the period of limitation for filing such an appeal. Sub-sections (4) and (5) which are relevant for our purpose, read as under:

(3.) In plain terms, sub-section (4) of section 85 of the Finance Act, 1994 is worded widely and gives ample powers to the Commissioner while hearing and disposing of the appeals to pass such orders as he thinks fit including an order enhancing tax, interest or penalty. Such powers would, therefore, inherently contain the power to remand a proceeding for proper reasons to the adjudicating authority. In absence of any specific bar in this respect, in our opinion, the appellate powers flowing from sub-section (4) of section 85 would clothe the Commissioner (Appeals) with power to even remand the proceedings. If proper inquiry is not conducted or the proceedings is decided ex parte, it would not be necessary in every case that the Commissioner (Appeals) converts himself to the adjudicating authority and conducts the entire inquiry necessary for proper adjudication of the issues. In such a case, the Commissioner (Appeals) may as well decide to remand the proceedings, and we see no limitation on his powers to do so.