Union Of INDIA Through C.C.E. Chandigarh vs. Nahar Industrial Enterprises LTD.

Facts

The petitioner, Union of India through C.C.E Chd, filed a writ petition seeking to quash an order dated 17.02.2010 passed by the Joint Secretary, Government of India. The respondent, Nahar Industrial Enterprises Ltd., placed on record orders from the Supreme Court of India dated 10.03.2022 and an order dated 19.09.2022 passed by the Deputy Commissioner. The Deputy Commissioner's order sanctioned a refund claim of Rs. 24,90,176/- to the respondent in cash through RTGS. This was done in terms of Section 11B of the Central Excise Act, 1944, read with Section 142(3) of the CGST Act, 2017, following the Supreme Court's order. The respondent had approached the Supreme Court against a High Court order dated 11.09.2008, which was dismissed. The High Court noted that the department itself had granted the cash benefit to the respondent.

Held

The Court held that the present writ petition stands dismissed. The reasoning was based on the subsequent order dated 19.09.2022 passed by the Deputy Commissioner, which sanctioned the refund claim of Rs. 24,90,176/- in cash to the respondent. This action by the department was taken in light of the Supreme Court of India's order dated 10.03.2022, which observed that no substantial question of law arose for consideration. The Court noted that the respondent had approached the Supreme Court against a previous High Court order, which was dismissed and upheld by the Supreme Court. Given that the department itself had subsequently provided the benefit of cash refund to the respondent, the Court found no case to interfere with the order dated 17.02.2010. The ratio decidendi is that once a refund claim has been sanctioned by the department in compliance with higher judicial pronouncements, a prior writ petition challenging an order related to that claim becomes infructuous.

Key Issues

1. Whether the present writ petition is maintainable given the subsequent order passed by the department sanctioning the refund claim to the respondent. (Question of law) Contentions: Petitioner (Union of India): The petitioner did not explicitly argue on the maintainability of the petition. The court's decision was based on the subsequent events. Respondent (Nahar Industrial Enterprises Ltd.): The respondent relied on the order dated 19.09.2022 passed by the Deputy Commissioner, which sanctioned the refund claim of Rs. 24,90,176/- in cash. They also referred to the Supreme Court's order dated 10.03.2022, which led to the Deputy Commissioner's decision, and highlighted that the Supreme Court had dismissed the respondent's appeal against the High Court's earlier order. The respondent contended that since the department itself had granted the benefit, the present petition should be dismissed.