The Nagpur Bench of the Bombay High Court has quashed an order of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) that dismissed an appeal filed by Titan Company Ltd. for non-appearance of its counsel.

The division bench comprising Justice Anil L. Pansare and Justice M. M. Nerlikar held that the Tribunal had no authority under the Central Excise Act, 1944 to dismiss appeals in default, and was bound to decide matters on merits.

The petitioner, Titan appealed before CESTAT was dismissed on April 19, 2023, citing Rule 20 of the CESTAT (Procedure) Rules, 1982, which permits dismissal of appeals for non-prosecution. A subsequent application for restoration was also rejected on July 25, 2024.

During the High Court hearing, Titan’s counsel argued that the Tribunal’s dismissal violated the principle laid down by the Supreme Court in Balaji Steel Re-Rolling Mills vs. Commissioner of Central Excise and Customs (2014) 16 SCC 360, where it was held that the Tribunal must adjudicate on merits, even if the appellant or counsel is absent.

The Court observed that while Rule 20 of the 1982 Rules appears to allow dismissal for default, the statutory scheme under Section 35(C) of the Central Excise Act, 1944 does not empower CESTAT to dispose of appeals in such a manner. Instead, the Tribunal is obligated to confirm, modify, annul, or remand the matter based on merits.

Significantly, counsel for the department also conceded that the Tribunal’s approach was inconsistent with the Supreme Court’s ruling. Accepting this, the bench held that the CESTAT’s dismissal order was unsustainable in law.

Allowing Titan’s appeal, the Court set aside both the April 19, 2023 and July 25, 2024 orders of CESTAT and directed that the matter be decided on merits.

Case Details

Case Title: Titan Company Versus Commissioner CGST

Case No.: Central Excise Appeal No. 1/2025

Date: 22/08/2025

Counsel For  Petitioner: Sajiv N. Kapoor

Counsel For Respondent: Preeti D. Rane

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