Ultra vires challenge to capacity determination rules extinguished the Revenue's appeal after the binding ruling was left undisturbed.

Rule 3 of the Hot Air Stenter Independent Textile Processors Annual Capacity Determination Rules, 1998 had already been declared ultra vires Section 3A, and the Special Leave Petition against that ruling had been dismissed. On that binding position and the parties' joint submission, the Bombay HC held that no surviving cause of action remained in the Revenue's appeal. The Court therefore dismissed the appeal by consent, declined to answer the substantial questions of law framed at admission, and made no order as to costs.

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Outcome: The Revenue's appeal was dismissed for want of cause of action after the governing rule had already been held ultra vires and the parties agreed that no further issue survived for adjudication.

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