The High Court · 2023
Case Details
Signature Not Verified Digitally Signed Signed by: SANGRAM DAS Reason: Authentication Location: High Court of Orissa, Cuttack Date: 21-Aug-2023 15:11:10 IN THE HIGH COURT OF ORISSA AT CUTTACK FAO No. 64 of 2018 Appellant KIOCL Ltd. Mr.S.S.Mohanty, Advocate …. Union of India …. Respondent
Legal Reasoning
Mr.C.K.Pradhan, Senior Panel Counsel -versus- CORAM: JUSTICE B. P. ROUTRAY
Decision
ORDER 17.08.2023 Order No. 07. 1. 2. The matter is taken up through Hybrid mode. Heard Mr.Mohanty, learned counsel for the Appellant and Mr.Pradhan, learned Senior Panel Counsel for the Respondent-Union of India. 3. Mr.Pradhan, learned Senior Panel Counsel concedes in terms of order dated 13th March 2023 that, present appeal is concerning about congestion charges only and completely different form Distance Based Charges (DBC) and therefore the hearing in the present appeal can proceed without any impediment. 4. Present appeal by KIOCL Ltd., a Government of India enterprise and a company incorporated under the provisions of Companies Act, is directed against impugned judgment dated 13th November 2017 passed by the Railway Claims Tribunal, Bhubaneswar Bench in OA III/9/2014. 5. The dispute is relating to Congestion Charges in railway freight for the period from 24th April 2008 to 21st May Page 1 of 4 Signature Not Verified Digitally Signed Signed by: SANGRAM DAS Reason: Authentication Location: High Court of Orissa, Cuttack Date: 21-Aug-2023 15:11:10 2008. The railways collected 100% Congestion Charges on basic freight and the Appellant claimed for refund of 70% therefrom. The refund claim amount is Rs.4,36,83,209/-. 6. The admitted fact remains that 26 Railway Receipts (RRs) were issued for the purpose of consignment during the period from 24th April 2008 to 21st May 2008 from Kirandul to Visakhapatnam Port siding. It is also admitted that the RRs were of different dates within the given period and booked under the rate prescribed for Class-180. It is also admitted that Class-170 came into force from 1st May 2008 and onwards. Class-180 was applicable for iron ores used for domestic and non-domestic consumption from 31st March 2008 to 30th April 2008. Class-170 became effective from 1st May 2008 and onwards that separates use of iron ores for domestic consumption only. In other words, up-to 30th April 2008, the iron ores meant for use for domestic purpose and non-domestic purpose were coming under Class 180. But from 1st May 2008 the iron ores meant for use for domestic purpose were covered under class 170. As per Rate Circular No.15, 30% Congestion Charges would be applicable if the use of iron ores is need for domestic consumption. 7. The crux of the dispute hinges on the point that, whether the iron ores transported during the given period is meant for using domestic consumption or other than domestic consumption. 8. Admittedly, the Applicant Company is engaged for preparing pellets for export purpose from the iron ores it received. Mr.Mohanty submits on behalf of the Appellant that for the given period the iron ores transported by the Applicant were never used Page 2 of 4 Signature Not Verified Digitally Signed Signed by: SANGRAM DAS Reason: Authentication Location: High Court of Orissa, Cuttack Date: 21-Aug-2023 15:11:10 for export purpose and were used for domestic consumption only. He thus prays for applicability of 30% Congestion Charges instead of 100%. 9. As stated above, the RRs were undisputedly issued in respect of Class-180 which is needed for other purpose than domestic consumption with effect from 1st May 2008 and onwards. Prior to 1st May 2008, i.e. for the period from 24th April 2008 to 30th April 2008, admittedly Class-180 was applicable for both domestic and non-domestic consumption purpose. As per Rate Circular No. 15, the freight charges for all types of iron ores including domestic consumption were as per Class-180 till 30th April 2008 and Class-180 became inapplicable from 1st May 2008 onwards for such transportation of iron ores for domestic consumption and the rate as per Class 170 became applicable for domestic consumption. So the question is whether the Applicant transported the iron ores as per those 26 RRs for the given period, for domestic consumption or other than domestic consumption. The RRs were admittedly booked under class 180 on different dates varying from 24th April 2008 to 21st May, 2008 and from this the inevitable inference is that the consignment is meant for other purpose than domestic consumption, particularly after 30th April 2008 when the rate under Class-170 was made effective only for domestic consumption. So the continuance of booking the consignments in the RRs beyond 30th April 2008 indicates the intention of the Applicant that the consignment was for other purpose than domestic consumption because the rate class was different from 1st May 2008. So looking from any angle, the case of Applicant is not established to make him entitled for charges Page 3 of 4 Signature Not Verified Digitally Signed Signed by: SANGRAM DAS Reason: Authentication Location: High Court of Orissa, Cuttack Date: 21-Aug-2023 15:11:10 @30% only as per Class-170 beyond 30th April 2008. So far as the period from 24th April 2008 to 30th April 2008 is concerned, admittedly for those 7 days no difference was there between domestic purpose and non-domestic purpose, and both were falling within the same rate under Class-180. If the Rate Circular No.15 has come into force with effect from 31st March 2008 prescribing Congestion Charges at 30% irrespective of purpose of consumption, the Applicant cannot be charged at 100%, even if for Class-180 till 30th April 2008. Therefore, the submissions advanced on behalf of the Applicant that they are entitled for refund of 70% of the Congestion Charges for the period from 24th April 2008 to 30th April 2008 is found justified. Accordingly, this Court while holding that the Appellant is entitled for refund of 70% of Congestion Charges for the period from 24th April 2008 to 30th April 2008 directs the Respondent-Union of India to calculate the refund amount and refund the same accordingly. 10. In the result, the appeal is allowed to above extent and the Respondent-Union of India are directed to refund 70% of the Congestion Charges received from the Applicant for the period from 24th April 2008 to 30th April 2008 within a period of four months from today. 11. An urgent certified copy of this order be issued as per rules. Judge ( B.P. Routray) S.Das Page 4 of 4