Allahabad Bench of the CESTAT - High Court still Persistent

By Vijay Kumar

CONTINUATION of the story from Friday DDT.

Pursuant to the order dated 28.10.2015, on 16.11.2015the Registrar of CESTAT is present in person in the Court and has filed an affidavit of compliance. The Registrar has also pointed out that letters dated 19.10.2015 and 3.11.2015 have been written to the Department of Revenue, Ministry of Finance, New Delhi requesting that space measuring 12000 Sq.ft. be made available at 34-A, M.G.Marg, Allahabad from CPWD for setting up a permanent Bench of CESTAT at Allahabad and also the Red building which is within the premises of the Central Excise Department where at present a temporary Tribunal has started functioning from few rooms. The Registrar CESTAT has also informed that appointment of Members is under consideration with the Ministry of Revenue where the matter is pending. The Registrar has also informed that the President CESTAT has directed constitution of Division Bench to hear appeals from 7.12.2015 to 18.12.2015 in the month of December, 2015.

The Ministry of Finance was also required to file an affidavit. Sri Ashok Mehta, the senior counsel submitted that an affidavit was received in their office only the previous night and stated that the affidavit was found to be defective and accordingly could not be filed in the Registry.

The High Court observed, "the Ministry of Finance is not doing enough for setting up the permanent establishment of CESTAT. Nothing has been brought on record to indicate what steps they have taken subsequent to our order.

The Commissioner, Central Excise and Customs, Allahabad has filed an affidavit indicating that they had two Guest Houses at Allahabad. In the first Guest House they have five rooms and in the second Guest House, which is in the Red building there are two suites and one intervening room. It has also been stated that funds amounting to Rs.7,97,250/- was sanctioned for renovating the said rooms. The Commissioner has also pointed out that a large number of officials comes to stay there for official purposes and, therefore, the said suites are required for their purposes.

We are of the opinion, that since the the Excise Department has two Guest Houses and one of the Guest Houses has 5 rooms, the second Guest House comprising of two suites and one intervening room which is in the Red building in which CESTAT is functioning at the present moment can be given these rooms for effective functioning of CESTAT.

We also find from the affidavit of the Commissioner Central Excise, Allahabad and the statement made by Sri Ashok Mehta on behalf of the Ministry of Finance that the present sitting arrangement of the Tribunal in the Red building at Allahabad is only a temporary measure and is not on a permanent basis and, therefore, this controversy must be set at rest for all times to come. In this regard the Registrar, CESTAT Tribunal, Delhi has conceded that as per the norms a space of 12000 Sq.ft. is required whereas the temporary Red building allows approximately 4000 Sq.ft. Further, Sri Ashok Mehta, the learned senior counsel submitted that the Red building is a heritage building and, therefore, no structural changes can be made without the necessary permission from the competent authorities.

Considering the aforesaid, we are of the opinion, that at the present moment the functioning of the Tribunal at the Red building located inside the Central Excise Department will only function as a temporary arrangement till such time a permanent establishment is not made for the Tribunal. It is for the Tribunal to ensure that they locate a permanent place for establishment of a permanent Bench of the Tribunal at Allahabad".

The High Court gave the following directions.

1. The Department of Revenue, Ministry of Finance will take urgent measures on priority basis in coordination with the Ministry of Urban Development with regard to allocation of establishing the Regional Bench of the CESTAT at 34-A M.G. Marg, Allahabad or any other suitable place, which we have already suggested to the Registrar CESTAT in our earlier orders, for places to be located with the help of the District Magistrate, Allahabad. Final orders in this regard are required to be taken on or before the next date since the matter cannot be delayed any further.

2. The Ministry of Finance will further indicate the steps taken for appointment of the Members of the Tribunal.

3. The Department of Revenue Ministry of Finance in coordination with the Chairperson, CBEC, North Block, New Delhi will pass appropriate orders for allocating the entire Red building, which includes the two suites and one intervening drawing room to be given to the Tribunal for its functioning on a temporary basis, so that effective functioning of the Tribunal can be done. Necessary orders should be passed on or before the next date.

4. The Department of Revenue, Ministry of Finance in coordination with the CPWD will get an estimate of the rent of the Red building so that the Department of Central Excise and Customs at Allahabad is adequately compensated and or paid a fair rent and also to offset the renovation cost which the Ministry had sanctioned for renovating the additional guest house.

5. Since the affidavit from the Department of Revenue Ministry of Finance was found to be defective, we direct the Ministry to comply with the aforesaid directions and file an affidavit to that extent on or before the next date. The Under Secretary to the Government of India, Ministry of Finance, Department of Revenue will also be present on the next date.

6. We find that the transfers postings of Members of CESTAT are to be done by the President, CESTAT. We request the President CESTAT to ensure that Single and Division Benches are done and Members are posted at Allahabad and necessary orders to that effect be passed.

Positively not the end: The case is to be listed on 16.12.2015 for the next hearing. It requires great perseverance even from a High Court to get things done.