A case has come to the notice of the Board wherein a Commissioner of Central Excise held mutual discussion with a Public Sector Undertaking and decided the case in favour of the Public Sector Undertaking. The decision of Committee on Disputes (COD) was that the Public Sector Undertaking should resolve the matter through mutual discussion with the Department of Revenue (CBEC) and to come back to the Committee in the event of matter being not resolved.

2.     In this regard attention is invited to the Board's instructions issued under F.No. 390/85/93-JC dated 10.2.94 wherein it was stated that the Public Sector under taking should first try to resolve the disputes through discussion with the Chief Commissioners. These instructions on where authorise the Commissioners to resolve the disputes after mutual discussion with Public sector Undertaking. Even in cases the mutual discussion takes place between the Chief Commissioner and Public sector Undertaking, a decision for pursuing or not pursuing the appeal in the Tribunal or Courts is to be taken by the Committee on Disputes and not be the Chief Commissioner. There is no authority under the law to Commissioner/ Chief Commissioner to modify an existing order passed by the competent adjudicating authority/ appellate Authority. This can only be done by CEGAT/ Courts after the permission to pursue the matter is given by Committee on Disputes.

3.     The Board has taken serious view of this matter. It is again desired that whenever committee on disputes has directed to resolve the dispute after mutual discussion with a Public Sector Under taking, such discussions have to take place at the Board's level and not at the level of Commissioner/ Chief Commissioner.

4.     The above instructions may please be followed strictly in future.