Gyan Enterprises (Trade Division) v. Coal India Ltd.
2013-06-12
APARESH KUMAR SINGH, PRAKASH TATIA
body2013
DigiLaw.ai
ORDER By Court.–Heard learned counsel for the parties. 2. Admit. 3. No notice is required to be issued as respondents have put appearance. 4. Heard learned counsel for the parties for interim relief. 5. We perused the communication dated 5.3.2013, Annexure-6, wherein it is mentioned by the Coal India Ltd. that there are conflicting verdicts in several cases of the Hon'ble Supreme Court, on the issue of Royalty being considered as 'tax' or 'not tax', and currently form subject matter of a case pending before nine member bench of the Hon'ble Supreme Court, which is yet to be heard/decided. However, considering the facts that Central Excise is an indirect levy and no purpose would be served by ligating the matter, it is decided to discharge Central Excise Duty on the element of 'Royalty' and 'Stowing Excise Duty' collected by its coal producing subsidiaries" and interim order passed by Division Bench of Bombay High Court, Nagpur Bench in Writ Petition No. 1425/2013 and Calcutta High Court in W.P. No. 12474(W) of 2013, operation of the communication dated 7th May, 2013 and consequently recovery of the amount from the writ petitioners is hereby stayed. 6. It is made clear that in case petitioners fail in the writ petition then they shall have to pay interest amount if it is required to be paid to the concerned taxing authority. 7. List this case along with WP(T) Nos. 3263/2013, 3327/2013, 3328/2013, 3109/2013, 3297/2013, 3299/2013, 3307/2013, 3308/2013, 3165/2013, 3166/2013, 3169/2013, 3170/2013, 3255/2013, 3258/2013, 3262/2013, 3282/2013, 3329/2013 and 3330/2013. Since WP(T) No. 3087 of 2013 has been admitted and defects are of minor nature, the defects are ignored and these writ petitions arc also admitted and the interim order passed in WP(T) No. 3087 of 2013 shall operate in the aforesaid writ petitions also. 8. A copy of the writ petition has been served upon the counsel for the Excise Department, who may take instruction from the Union of India, if necessary. Stay granted.