2004 (3) TMI 518 - AT - Customs

Summary

Issues:
1. Implementation of Tribunal's final order regarding cancellation and return of bank guarantee.
2. Filing of Special Leave Petition (SLP) against the order of the Bombay High Court and its impact on the bank guarantee.

Analysis:

Issue 1:
The Tribunal had previously set aside demands against a company and its director as time-barred, along with penalties imposed. Consequently, a bank guarantee of Rs. 55 lakhs was to be cancelled and returned. Despite this, the guarantee was not returned, leading to a miscellaneous application seeking directions for implementation of the Tribunal's order. The Deputy Commissioner of Customs stated that the guarantee was to be kept alive due to an SLP filed by the department against the High Court's order. However, the Tribunal held that the mere filing of an SLP does not justify withholding the guarantee, especially in the absence of a stay from the Supreme Court. Therefore, the respondents were directed to cancel and return the bank guarantee promptly.

Issue 2:
The Deputy Commissioner's argument that the bank guarantee should be retained due to the SLP filed by the department was dismissed by the Tribunal. The Tribunal emphasized that unless a stay order was issued by the Supreme Court, the guarantee must be returned as per its order. The Deputy Commissioner's request to dismiss the application for returning the guarantee was not accepted, and the respondents were instructed to comply with the Tribunal's directive. A deadline for producing a compliance report was set for 30th March, 2004, ensuring timely action on the cancellation and return of the bank guarantee as per the Tribunal's final order.

This comprehensive analysis highlights the Tribunal's firm stance on the return of the bank guarantee in accordance with its order, despite the department's SLP filing. The judgment underscores the importance of complying with tribunal directives and the need for timely execution of legal obligations.