Long Adjournment during Pandemic could have Ensured Justice: CESTAT on Denial of CENVAT Credit to Ambuja Cements [Read Order]

The Mumbai bench of Customs, Excise, and Service Tax Appellate Tribunal ( CESTAT ), on denial of CENVAT Credit to Ambuja Cements, recently observed that long adjournment during pandemic could have ensured justice.

The tribunal set aside an order denying CENVAT credit to Ambuja Cements, citing that the appellant was deprived of a fair opportunity to present its case.

During the peak of the pandemic, personal hearings were conducted virtually. However, Ambuja Cements, located in the remote Chandrapur district of Maharashtra, faced significant challenges due to poor network connectivity, making virtual participation impractical.

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Additionally, the appellant argued that presenting voluminous invoices virtually was nearly impossible, further exacerbating the difficulties in defending their case.

The counsel for Ambuja Cements submitted that the denial of adjournments and the strict adherence to procedural timelines, even as other courts relaxed norms during the pandemic, resulted in the appellant being denied a chance to present their case.

The counsel requested the matter be remanded for de novo adjudication, ensuring both parties could fully present their arguments.

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The bench of Dr. Suvendu Kumar Pati ( Judicial Member ) noted that while the Commissioner (Appeals) had granted multiple opportunities for hearings, the appellant’s inability to participate was well-documented, including an email citing unavoidable circumstances due to the pandemic.

The tribunal observed that a more considerate approach, such as granting a longer adjournment during the pandemic, could have ensured justice. It acknowledged that internet accessibility in remote areas posed genuine challenges, further justifying the need for leniency during unprecedented times.

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CESTAT concluded that the principles of natural justice were not upheld in this case. It allowed the appeal by remanding the matter for fresh adjudication, setting aside the previous order.

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