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2013 (10) TMI 1097

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..... tage of pendency because it is assumed that what is enunciated by the Supreme Court is, the law from the inception unless, of course, the Supreme Court expressly indicates that the decision would have prospective effect - the appeal was filed before 17th February, 2011 when the Constitution Bench judgment of the Supreme Court recalling the earlier orders was pronounced - The orders whereby clearance was required having been recalled, the appeal and the stay application could not have been dismissed on the ground of want of clearance or want of an application for clearance – order set aside – matter restored before the CESTAT. - W.P. No. 1009 of 2012 - - - Dated:- 3-1-2013 - Indira Banerjee, J. Dr. Samir Chakraborty S/Shri Abhijit B .....

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..... ourt. Thereafter an order dated 11-10-1991 followed, directing the Government of India to set up a Committee to monitor such disputes. Pursuant to the aforesaid order a Committee was constituted. The Committee was initially called High-Powered Committee (HPC). The Committee was later called Committee of Secretaries (COS). 5. In the ONGC-III case which is reported in (2007) 7 SCC 391 = 2009 (233) E.L.T. 30 (S.C.) = 2009 (13) S.T.R. 482 (S.C.) the Hon ble Supreme Court directed that in the absence of clearance from CoS any legal proceedings should not be proceeded with. A further order dated 20th July, 2007 was passed in the fourth ONGC case, extending the concept of dispute resolution by High-Powered Committee to amicable resolution of dis .....

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..... illustrations. The mechanism was set up with a laudatory object. However, the mechanism has led to delay in filing of civil appeals causing loss of revenue. For example, in many cases of exemptions, the Industry Department gives exemption, while the same is denied 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 .....

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..... e decision would have prospective effect. May be, as contended by Mr. Maity, the appeal was filed before 17th February, 2011 when the Constitution Bench judgment of the Supreme Court recalling the earlier orders was pronounced. The orders whereby clearance was required having been recalled, the appeal and the stay application could not have been dismissed on the ground of want of clearance or want of an application for clearance. 8. The impugned order is, thus, set aside. The writ petition is disposed of accordingly. 9. Affidavits not having been called for, the allegations made in the writ petition shall be deemed not to have been admitted. 10. The learned Tribunal shall dispose of the stay application in accordance with law within t .....

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