R.F.NARIMAN,J. - (1.) The present reference arises from a judgment of the Division Bench of this Court reported as Bhuwalka Steel Industries Limited and Another vs. Union of India and Others, (2017) 5 SCC 598. The question before the Court was set out as follows:- "20. The validity of Rule 5 of the 1997 Rules is challenged both before the High Court and before us on two grounds: 1. That the Rule is ultra vires the authority conferred under Section 3-A of the Act; and 2. That the Rule is violative of Article 14 of the Constitution of India. Because the Rule creates two classes of manufacturers:- (i) whose ACP is determined to be more than their actual production in the Financial Year 1996-97. (ii) Whose ACP is determined to be less than their actual production for the Financial year 1996-97; and imposes an irrational tax burden on the second of the above-mentioned two classes of manufacturers falling within the ambit of the 1997 Rules."
(2.) This question has not been answered by the Division Bench. Instead, the Division Bench went into a completely different question, which was posed as follows:- "51. Whether an assessee who chooses once to pay duty in terms of Rule 96-ZP(3) can be compelled to pay duty calculated in accordance with the said Rule for all times to come without any regard to the actual production is a question which requires examination."
(3.) This question was then referred to a larger Bench as follows:- "63. Therefore, we find it difficult to accept the submission of the respondent that the issue is covered by the judgments of this Court in Venus Castings (2000) 4 SCC 206 and Supreme Steels (2001) 9 SCC 645. In our opinion, for the reasons mentioned above, these two judgments require a further examination. Apart from that, these judgments did not deal with vires of Rule 96-ZP(3). However, in view of the fact that Supreme Steels is a decision rendered by a Bench of three learned Judges, we deem it appropriate that the question of law be settled by a Bench of an appropriate strength. We, therefore, direct the Registry to place the matter before Hon'ble the Chief Justice of India for further orders." ;