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2014 (5) TMI 899 - HC - Indian LawsClassification of royalty - whether the royalty is a tax or not - determination of price of coal - The writ petitioners after having adjusted successful bidders purchased the coal upon deposit of the price of the coal as well as the charges, levies & taxes as imposed by the Coal Companies. - maintainability of writ petition being the contract is mutual agreement - alternative remedy - Held that:- The invocation of power of judicial review is a discretionary relief with certain self-imposed restrictions and/or limitations by the Court itself. Ordinarily the writ court does not go into the serious disputed questions on fact when the same is amenable to the other remedies provided either under the contract or under a relevant statute. - The Apex Court in case of Tantia Construction Pvt. Ltd. clearly held that the existence of an alternative remedy is not an absolute bar to the invocation of the writ jurisdiction by the High Court. The identical issue is pending before the larger bench of the Supreme Court and have not been finally decided as yet. This Court, further, does not feel that the action of the said respondents by issuing the aforesaid notices/memos could at all be sustained. The Authorities are, therefore, directed to suspend their action for realization of the said amount from the future contracts, if to be awarded to the writ petitioners at this moment. Since the respondents have themselves chosen to deposit the excise duty on the royalty and stowing excise duty and in fact, paid the same and in the event, the larger bench of the Supreme Court decides the matter holding that the royalty is not a tax, the writ petitioners are certainly bound to pay the excise duty over the royalty. This Court, therefore, feels that equilibrium is required to be maintained. - The writ petitioners are, therefore, directed to give an indemnity bond to the aforesaid respondents indemnifying their obligations to pay the excise duty in such eventuality. Such indemnity bond shall be furnished within two weeks from the date.
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