STEEL AUTHORITY OF INDIA LTD Vs. CESTAT

JUDGEMENT

(1.) In this writ application Steel Authority of India Ltd., a Government Company within the meaning of the Companies Act, 1956, wholly owned by the Govt. of India, has challenged an Order No. S-1124/KOL/2012 dated September 19, 2012 passed by the Customs, Excise & Service Tax Appellate Tribunal, hereinafter referred to as the 'CESTAT', dismissing the appeal of SAIL being Excise Appeal No. E/A/703/2010 as also the application of SAIL for dispensation of pre-deposit being Stay Petition No. E/S/884/2010. Being aggrieved by an order of adjudication dated August 10, 2010 whereby the adjudicating authority confirmed excise duty demand of Rs. 78,97,686/- along with interest and penalty of Rs. 4,84,83,657/-, SAIL preferred the said Appeal No. E/A/703/2010 before the 'CESTAT'. SAIL also filed the application being E/S/884/2010 praying for dispensation of the requirement of pre-deposit of the disputed duty and penalty.

(2.) The said application, taken up for hearing on September 19, 2012, was dismissed along with the appeal, on the purported ground that SAIL had not produced the requisite COD (Committee of Disputes) clearance.

(3.) By an order dated September 11, 1991 which is ONGC & Anr. v. CCE, 1992 Supp2 SCC 432, the Supreme Court observed that Public Sector Undertakings of Central Government and the Union of India should not fight their litigations in Court. 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).