2011 (5) TMI 785 - AT - Central Excise

Restoration - dismissed on the ground of absence of clearance by the Committee on Disputes Held that - there is no requirement of obtaining approval of the Committee on Disputes for pursuing litigations as was being done circular nowhere states that the decision of the Apex Court would apply retrospectively. Once the law has been clarified it is not necessary for the Board further to clarify that the same would be effective right from the day on which the orders were passed which have been recalled request for recall of the order allowed and the appeal is restored to the board

Summary

Issues:
Restoration of appeal dismissed due to absence of clearance by Committee on Disputes.

Analysis:
The judgment revolves around the restoration of an appeal that was dismissed due to the absence of clearance by the Committee on Disputes. The dismissal was based on a letter dated 13th July 2009 from DYGM (F&A), I/C Finance of ONGC Ltd. to Reliance Industries Ltd., Nagothane, Raigad. The dismissal was in line with directions issued by the apex court in various cases of ONGC Ltd. However, the apex court, in Electronics Corporation of India Ltd. v. Union of India, recalled earlier orders requiring NOC from the Committee on Disputes for filing appeals. This meant that even without NOC, the department could file appeals. Section 35B(1) provides the right to challenge orders by the Commissioner of Central Excise or Commissioner (Appeals) before the Tribunal, without being subject to the NOC requirement. The recall of previous orders by the apex court eliminated the basis for dismissing appeals due to lack of NOC.

Moreover, the directions issued by the apex court did not completely prohibit the Tribunal from entertaining appeals without NOC, especially when the matter warranted Tribunal's attention. The judgment clarified that the apex court's decision applied from the day the law was declared and in existence, without the need for retrospective clarification. A circular by the Board further confirmed that obtaining approval from the Committee on Disputes was no longer required for litigations. The circular also stated that proposals sent to the Committee before a certain date would be covered by the court's decision, indicating no retrospective application clarification was necessary.

The judgment emphasized that orders dismissing appeals solely based on the absence of NOC from the Committee on Disputes were not valid post the apex court's directions. Therefore, the appeal in question was restored, and the case was directed for final hearing on a specified date. The decision highlighted the importance of aligning with the apex court's directives and ensuring that statutory rights to challenge orders were not hindered by unnecessary requirements.