2015 (10) TMI 1530 - HC - Customs

Stay the reference order passed by the Tribunal - Tribunal, without even going into the merits of the case, passed an order referring the matter to the Larger Bench and the same does not disclose the compliance of law as laid down by the Apex Court in its context Respondent seeks time to prepare the matter and argue the same at length Held That - No need for the matter to be referred by the Larger Bench; stay granted as such and issues with regard to waiver of pre-deposit will be considered with other appeals.

Summary

Issues involved: Stay of reference order passed by the Tribunal without going into the merits of the case, compliance of the requirement of law in relation to reference order, lack of reasoned order for referring the matter to the Larger Bench, necessity of referring the matter to the Larger Bench when there is no definite decision disagreeing with the view of the coordinate Bench.

Analysis:

The Miscellaneous Petition before the Madras High Court sought to stay the reference order passed by the Tribunal without delving into the merits of the case. The appellant's counsel argued that the Tribunal did not comply with the legal requirements set by the Apex Court for reference orders. It was contended that the Tribunal failed to provide a reasoned order for referring the matter to the Larger Bench. The counsel emphasized that in the absence of a clear disagreement with the coordinate Bench's view, there was no justification for the Tribunal to refer the matter to the Larger Bench during the stay petition hearing.

After hearing both parties, the Court was inclined to accept the appellant's prima facie argument that there was no necessity for the Tribunal to refer the matter to the Larger Bench, especially in light of the two decisions cited by the Tribunal. Consequently, the Court granted an interim stay of the reference to the Larger Bench. The Court clarified that the issue concerning the waiver of pre-deposit would be examined along with all other appeals. The case was listed for further proceedings on a specified date.

This judgment reflects the Court's careful consideration of the procedural aspects surrounding the Tribunal's decision to refer a matter to the Larger Bench. By emphasizing the need for reasoned orders and clear justification for such referrals, the Court ensured that the legal requirements and principles laid down by higher authorities were adhered to. The decision to grant an interim stay indicates the Court's commitment to ensuring fair and proper adjudication of the case, taking into account all relevant factors and legal considerations.