TMI Blog2009 (2) TMI 264X X X X Extracts X X X X X X X X Extracts X X X X ..... t and remaining fifty per cent share capital is held by the Maharashtra State Government, from the information available in the public domain itself, it appears that a fifty per cent of its shares are held by the State Government and the remaining fifty per cent by a Central Government undertaking by the name of Central Warehousing Corporation Ltd. There is thus little dispute about the basic position that the assessee is a State Government public sector undertaking-something which is vehemently denied by the counsel appearing for the assessee. 3. In the case of Oil Natural Gas Commission vs. CCE (1992) 104 CTR (SC) 31, Hon'ble Supreme Court expressed dissatisfaction with the fact that intra-Government litigation between various organs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onths from the date of this judgment. 5. Hon'ble Madras High Court, in the case of Tamilnadu Warehousing Corporation vs. Dy. CIT (2008) 15 DTR (Mad) 67, took note of the Hon'ble Supreme Court's directions in the case of Oil Natural Gas Corp. Ltd vs. City Industrial Development Corporation Maharashtra Ltd. Ors., as also of Chief Conservator of Forests, Government of Andhra Pradesh vs. Collectors Ors. (2003) 3 SCC 472 wherein it was observed that "disputes between Government Departments cannot be contested in Court. States/Union of India must evolve a mechanism for resolving inter-Departmental controversies". Their Lordships then noted that it is obligation of every Court or Tribunal, where such a dispute is raised hereafter, to dem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e learned chartered accountant that the said decision of the Hon'ble Andhra Pradesh High Court did not have the benefit of Hon'ble Supreme Court judgment in the case of Oil Natural Gas Corp. Ltd vs. City Industrial Development Corporation Maharashtra Ltd. Ors. wherein mechanism was laid down for such dispute resolution as well, he submits that the said Hon'ble Supreme Court decision does not lay down that in the absence of clearance of the Committee, the proceedings will not be proceeded with and that the constitution of such a committee is merely recommendatory. When he is confronted with the stand taken by the Hon'ble Madras High Court to the effect that in the absence of the committee's clearance, appeals are to be dismissed as not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Learned Departmental Representative does not object to summary rejection of the appeal on the ground of lack of CoD clearance, though with a liberty to revive the appeal as and when such a clearance is obtained or as and when it is made clear by the authorities that no such committee exists, or is under consideration, for disputes between State Government entities and the Central Government organs. 9. Having given our careful consideration to the matter, we are not inclined to uphold the stand of the learned counsel. As a small part of this judicial system, we are duty bound to follow the decisions of the higher tiers of this system. Once Hon'ble Madras High Court takes a stand in the matter, and there is no contrary stand available fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e impossible act of taking clearance from a committee which does not exist. However, there has to be some authoritative evidence of the fact that such a committee does not exist. The evidence has to be something more than bland (sic-bald) statements of the assessee, and perhaps by way of a confirmation from a responsible functionary in the State Government. In any event, there is no authoritative material before us that such a society (sic-committee) does not exist. The assessee's case is that since CEO of the assessee company is not yet informed about the constitution of the committee, and as per Hon'ble Supreme Court's direction, he was supposed to be a member of this committee, it is presumed that the committee is not yet constituted, bu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assistance, if that be so, many suffer unduly due to such mishap. The solution, however, is not at a lower level of judicial machinery. We do not, and cannot, rule out the possibility that if the Hon'ble High Court had an occasion to consider the arguments, which Mr. Ganoo has advanced before us, Hon'ble High Court's conclusions may have been different, but then just because presentation before us is perceived to be more comprehensive and thoughtful, we cannot decline to follow a binding judicial precedent. As for the fact that CoD (Cabinet Secretariat) has turned down assessee's request to grant clearance, in our humble understanding the assessee is a State Government undertaking, formed and incorporated under a legislation of the Maharas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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