Rashtriya Chemicals & Fertilizers Ltd & Anr. v. Union of India & Ors.

Mr. Bomi Patel with M.S. Bodhanwala & Mrs. Prachi Raj Mhatre i/b. M/s. Bodhanwala & Co. for petitioners. Mr. M.I. Sethna, senior Advocate with R. Ashokan for respondent Nos.1 to 7. Mr. Zoeb Gutlerywala Raj Parchmatia i/b. Udwadia & Udeshi for respondent No.8. CORAM : J.P. DEVADHAR AND MRS. MRIDULA BHATKAR, JJ. DATED : 3RD MARCH, 2011 P.C. :-

#3. Heard. Rule, returnable forthwith. By consent, petition is taken up for final hearing. The dispute in the present petition relates to the order passed by Committee of Disputes (COD) constituted under the order of 2 wp540-07 the Apex Court in the case of Oil & Natural Gas Commission V/s. Collector of Customs, Calcutta reported in 1994(70) ELT 45. In the present case, against the order in original dated 30/11/2005, the petitioners filed an appeal before the CESTAT and as per the decision of the Apex Court in the case of ONGC (supra) sought approval from the COD. By an order dated 18/7/2006, COD declined to grant approval. However, the CESTAT by its order dated 2/11/2006 treated the matter as closed in the absence of approval from COD. Challenging the order passed by the COD as also the order passed by CESTAT, the present petition has been filed.

#4. During the pendency of the petition, further applications made by the petitioners have also been rejected by the COD and the petition has been amended to challenge the said orders.

#5. The Apex Court in the case of Electronics Corporation of India Ltd. V/s. Union of India & Ors. in S.L.P. No.2538 of 2009 with Civil Appeal No.1903 of 2008 dated 17/2/2011 has recalled the direction given by it in constituting COD. In this view of the matter, the orders passed by the COD on 18/07/2006, 29/11/2006 and 4/1/2007 are quashed and set aside. Similarly, the order of the CESTAT dated 2/11/2006 in treating the matter as closed is also quashed and set aside. The appeal and the stay application filed by the petitioners against the 3 wp540-07 order in original dated 30/11/2005 before the CESTAT are restored to file. The CESTAT is directed to dispose of the same as expeditiously as possible.

#6. The petitioners are directed to keep the Bank guarantees already furnished in the matter alive till the disposal of the appeal pending before the CESTAT and for 8 weeks thereafter.

#7. During the pendency of the appeal, the respondents shall not encash the bank guarantees given by the petitioners.

#8. Rule is made absolute in the above terms with no order as to costs. (MRS. MRIDULA BHATKAR, J.) (J.P. DEVADHAR, J.)