TMI Blog2011 (2) TMI 3X X X X Extracts X X X X X X X X Extracts X X X X ..... ensure that no litigation comes to Court without the parties having had an opportunity of conciliation before an in-house committee. Experience has shown that despite best efforts of the CoD, the mechanism has not achieved the results for which it was constituted and has in fact led to delays in litigation. - Orders reported as (i) OIL AND NATURAL GAS COMMISSION Versus CCE (1991 - TMI - 43289 - SUPREME COURT) (ii) (1994 -TMI - 43712 - SUPREME COURT) and (iii) (Oil & Natural Gas Corporation Ltd Versus City & Indust. Dev. Corpn.,Maharashtra and Ors (2007 - TMI - 65616 - Supreme Court); recalled. - Civil Appeal No.1883 of 2011, & 1903 of 2008 S.L.P. (Civil) No. 2538 of 2009, - - - Dated:- 17-2-2011 - S. H. Kapadia; CJI, Mukundakam Sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the write off was made in terms of AS-2. The case of the assessee before the Commissioner of Central Excise (adjudicating authority) was that it was a financial requirement as prescribed in AS-2; that an inventory more than three years old had to be written off/derated in value; that such derating in value did not mean that the inputs were unfunctionable; that the inputs were still lying in the factory and they were useful for production and therefore they were entitled to Modvat/Cenvat credit. As stated above, this argument was rejected by the adjudicating authority and the demand against the assessee stood confirmed. Against the order of the adjudicating authority, the assessee decided to challenge the same by filing an appeal before CEST ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a stood rejected. The Tribunal came to the conclusion that the APM adopted by the assessee was in terms of the price fixed by the Ministry of Petroleum and Natural Gas; that it was not possible for the assessee to adopt the price in terms of Section 4(1)(a) of the 1944 Act; and that it was not possible to arrive at the transaction value in terms of the said section. Accordingly, the Tribunal allowed the appeal of the assessee. Aggrieved by the decision of the Tribunal, CCE has come to this Court by way of Civil Appeal No. 1903 of 2008 in which the assessee has preferred I.A. No. 4 of 2009 requesting the Court to dismiss the above Civil Appeal No. 1903 of 2008 filed by the Department on the ground that CoD has declined permission to the Depa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... themselves, to ensure that no litigation comes to Court or to a Tribunal without the matter having been first examined by the Committee and its clearance for litigation". 8. Thereafter, in ONGC-III case (supra), this Court directed that in the absence of clearance from the "Committee of Secretaries" (CoS), any legal proceeding will not be proceeded with. This was subject to the rider that appeals and petitions filed without such clearance could be filed to save limitation. It was, however, directed that the needful should be done within one month from such filing, failing which the matter would not be proceeded with. By another order dated 20.7.2007 (ONGC-IVth case) this Court extended the concept of Dispute Resolution by High-Powered Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Revenue Department. Similarly, with the enactment of regulatory laws in several cases there could be overlapping of jurisdictions between, let us say, SEBI and insurance regulators. Civil appeals lie to this Court. Stakes in such cases are huge. One cannot possibly expect timely clearance by CoD. In such cases, grant of clearance to one and not to the other may result in generation of more and more litigation. The mechanism has outlived its utility. In the changed scenario indicated above, we are of the view that time has come under the above circumstances to recall the directions of this Court in its various Orders reported as (i) 1995 Supp (4) SCC 541 dated 11.10.1991, (ii) (2004) 6 SCC 437 dated 7.1.1994 and (iii) (2007) 7 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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