High Court Madras High Court

Bharat Earth Movers Ltd. vs Asstt. Collector Of Customs, … on 2 December, 1993

Madras High Court
Bharat Earth Movers Ltd. vs Asstt. Collector Of Customs, … on 2 December, 1993
Equivalent citations: 1994 (70) ELT 201 Mad
Bench: Venkataswami


ORDER

1. The prayer in the writ petition read as follows :-

“……………. to issue a writ of mandamus or any other appropriate writ, direction or order to direct the Assistant Collector of Customs, Duty Draw Back Department, Customs House, Madras – 600 001, to pass appropriate and suitable orders of refund on the claim for duty draw back made by the Petitioner on 31-3-1981. …..”

2. The petitioner is a Government of India Public Sector Undertaking. The Supreme Court in Oil and Natural Gas Commission v. Collector of Central Excise reported in 1992 (61) E.L.T. 3 (S.C.), under similar circumstances, has held as follows :-

“We direct that the Government of India shall set up a committee consisting representatives from the Ministry of Industry, the Bureau of Public Enterprises and the Ministry of Law, to monitor disputes between Ministry and Ministry of Government of India, Ministry and Public Sector Undertaking of the Government of India and Public Sector Undertakings in between themselves, to ensure that no litigation come to court or to a Tribunal without the matter having been first examined by the Committee, and its clearance for litigation. Government may include a representative of the Ministry concerned in a specific case and one from the Ministry of finance in the Committee. Senior officers only should be nominated so that the Committee would function with status, control and discipline.

It shall be the obligation of every court and every Tribunal where such a dispute is raised hereafter to demand a clearance from the committee in case it has not been so pleaded and in the absence of the clearance, the proceedings would not be proceeded with.”

3. Following the above ruling of the Supreme Court, instead of disposing of the case on merits, the parties are directed to refer the matter to arbitration and settle the disputes in the light of the direction given by the Supreme Court (extracted above). The writ petition is disposed of accordingly. No costs.