Committee on Disputes clearance not required to file appeal; Tribunal must decide the matter on merits.

A public sector undertaking or government entity could institute an appeal or other proceeding to preserve limitation even without Committee on Disputes clearance, because the earlier restriction affected only further prosecution, not filing itself. Once the directions requiring COD permission were recalled, the Tribunal could not refuse to decide the appeal on merits merely for absence of clearance. The dismissal for want of COD approval was therefore unsustainable and the issue was answered in favour of the assessee.

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Issues: Whether the appeal before the Tribunal could be dismissed solely for want of Committee on Disputes clearance.

Analysis: The governing law, as declared by the Constitution Bench and later clarified, drew a distinction between institution of proceedings and their further progress. A public sector undertaking or government entity was not barred from filing an appeal or other proceeding to save limitation, and the absence of COD permission was not a fatal defect to institution. The only restriction under the earlier regime was that the matter could not be proceeded with until permission was obtained. That embargo stood lifted when the earlier directions concerning COD were recalled, and therefore the Tribunal could not refuse to decide the appeal on merits merely because COD clearance had not been produced.

Conclusion: The dismissal of the appeal for want of COD clearance was unsustainable and the question was answered in favour of the assessee.

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