2009 (4) TMI 651 - AT - Central Excise

Summary

Issues:
1. Requirement of COD clearance for filing an appeal by a public body.

Analysis:
The judgment revolves around the issue of the necessity of COD (Committee on Disputes) clearance for a public body to file an appeal. The appellant, a public body, argued that since the present proceedings were a continuation of old proceedings where COD clearance was already granted, there was no need for fresh clearance. The advocate cited previous Tribunal decisions to support this argument. However, the Tribunal highlighted that the requirement for COD clearance is not under the Central Excise Act or Customs Act but is based on the directions of the Apex Court in the Oil & Natural Gas Commission case. The Apex Court emphasized the establishment of a committee to monitor disputes between the government and public bodies to prevent unwarranted appeals and unnecessary burden on the public exchequer.

The Tribunal emphasized that the directions by the Apex Court mandate that at every stage of litigation involving a public body, clearance from the COD committee is necessary to avoid frivolous disputes and excessive expenditure. The Tribunal clarified that the requirement for COD clearance is not limited to the initial stage of litigation but applies to every stage to ensure compliance with the Apex Court's directions. The Tribunal rejected the appellant's argument that the present appeal was a continuation of old proceedings and therefore did not require fresh COD clearance, stating that the purpose of the clearance is to discourage unwarranted continuation of litigation.

Moreover, the Tribunal noted that previous Tribunal decisions cited by the appellant did not adequately consider the Apex Court's directions in the ONGC case, making them non-binding. The Tribunal concluded that the appellant must obtain COD clearance before proceeding with the appeal, emphasizing the importance of adhering to the Apex Court's directives. The matter was adjourned to a later date for further proceedings.

In summary, the judgment underscores the significance of COD clearance for public bodies filing appeals to prevent unnecessary litigation, in line with the directives of the Apex Court. The Tribunal clarified that such clearance is essential at every stage of litigation involving public bodies to uphold the integrity of the legal process and avoid undue burden on the public exchequer.