TMI Blog2015 (2) TMI 35X X X X Extracts X X X X X X X X Extracts X X X X ..... e nature of statutory contracts. Though in contractual arena, the exercise of the writ jurisdiction is not, as a matter of principle, excluded under Article 226 of the Constitution, the fact that the purchases were made not in pursuance of statutory contracts but contracts of a commercial nature is a factor which must be placed in the balance. The purchases have been made in pursuance of the Spot E-Auction Scheme, 2007, clause 4.4. of which required the buyers while quoting their bid price to submit the bid price as a base coal price on FOR/FOB colliery basis, exclusive of other charges like statutory levies, taxes, cess, royalty and stowing excise duty and other charges, as would be applicable at the time of delivery. These charges, were t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... recovery notices in order to facilitate the adjustment of equities and the working out of rights after the conclusion of the reference before the Supreme Court. - petition disposed of. - Writ Tax No. - 460 of 2014 - - - Dated:- 1-9-2014 - Dr. Dhananjaya Yeshwant Chandrachud, CJ And Dilip Gupta,JJ. For the Petitioner : Praveen Kumar For the Respondent : A.S.G.I., K.K. Pandey, S.D. Dubey, Shakti Dhar Dube ORDER The writ proceedings before the Court have been filed by 16 coal traders seeking to impugn the legality of a recovery notice dated 3 July 2014 issued by the Central Coalfields Ltd., a subsidiary of the first respondent, together with a memo of the first respondent dated 5 March 2013. The petitioners also seek a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -Auction Scheme, 2007, the following provisions were made in clause 4.4 : The Buyers while bidding shall quote their Bid price per tonne in Indian Rupee as base coal price on FOR/FOB colliery basis, exclusive of other charges like statutory levies, surface transportation charges, sizing/beneficiation charges, taxes, cess, royalty, SED, any other charges as will be applicable at the time of delivery. These charges as well as freight etc. shall be on the Buyers' account. An arbitration agreement is contained in the following terms in clause 11.12 : In the event of any dispute, Bidder/Buyer is necessarily required to represent in writing to the General Manager (Sales) of the concerned coal company, who would deal with the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... excise authorities were duly discharged and the differential excise duty has been paid. In paragraph 30(b) of the counter affidavit, it has been stated that the amounts of central excise duty on royalty and stowing charges have been duly deposited by the coal companies from 1 March 2011 to 28 February 2013 together with consequential value added tax. It was in view of this liability which has already been disbursed by the coal companies that a memo was issued on 5 March 2013 by the first respondent to its subsidiaries advising them to discharge the past central excise duty liability for the period between 1 March 2011 to 28 February 2013 immediately and to remit the challans evidencing payment to the exchequer, to the first respondent so a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the Supreme Court in view of the reference which has been made in Mineral Area Development Authority (supra). At the present stage, it is not in dispute that for the period between 1 March 2011 and 28 February 2013, differential excise duty on royalty and stowing charges has been deposited with the Central Excise Authorities by the coal companies. There is a specific averment to that effect in paragraph 30(b) of the counter affidavit which has been filed in these proceedings. The contracts between the coal companies and coal traders such as the petitioners, are not in the nature of statutory contracts. Though in contractual arena, the exercise of the writ jurisdiction is not, as a matter of principle, excluded under Article 226 of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nition of the expression 'transaction value' under section 4(3)(d) of the Act, on the culmination of the reference which is pending before the Supreme Court, any payments which are made in the meantime, would necessarily have to abide by the remedies provided under the Act, including by way of an application for a refund under section 11-B. Hence, at this stage, the only direction, which would be necessary to issue, would be to direct that the coal companies shall maintain a separate statement of account, trader wise, of the amount which is recovered in pursuance of the recovery notices in order to facilitate the adjustment of equities and the working out of rights after the conclusion of the reference before the Supreme Court. O ..... X X X X Extracts X X X X X X X X Extracts X X X X
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