2013 (7) TMI 903 - HC - Central Excise

Summary

Issues involved: Whether clearance from Committee on Disputes (COD) is required for filing an appeal, and the impact of the Apex Court's decision on the same.

In the judgment, the Civil Miscellaneous Appeal was filed by the assessee against the order of the Customs, Excise & Service Tax Appellate Tribunal, Chennai Branch, questioning the requirement of clearance from COD for the appeal. The substantial question of law raised was whether the impugned order dismissing the appeal for lack of COD clearance was correct, especially considering the absence of such a mechanism and the Hon'ble Supreme Court's referral of the issue for reconsideration by a larger Bench.

The assessee, a State Government Public Sector Undertaking, had their appeal rejected by the Tribunal due to non-obtaining of COD clearance. The Apex Court, in a previous decision involving Electronics Corporation of India Limited v. Union of India, highlighted the significant delays in obtaining COD clearance and the unnecessary burden it placed on parties involved in cases with high stakes. Consequently, the Apex Court rescinded its previous directions, making it no longer mandatory for PSUs to seek clearance from the High Powered Committee before initiating legal proceedings.

In light of the Apex Court's decision mentioned above, the Tribunal's order was deemed invalid, and therefore set aside. The Tribunal was instructed to proceed with the appeal, evaluate it on its merits, and issue orders in accordance with the law.

As a result, the Civil Miscellaneous Appeal was allowed with no costs, and the connected CMP was closed.