2009 (2) TMI 561 - AT - Customs

Summary

Issues:
1. Validity of the stay order granted by the Tribunal.
2. Compliance with the stay order by the Deputy Commissioner of Customs regarding the Bank Guarantee.

Issue 1: Validity of the stay order granted by the Tribunal
The Appellate Tribunal, CESTAT, Bangalore, granted a stay order in a case where the appellants had already deposited a significant amount. Despite the stay order, the revenue requested an extension of the Bank Guarantee validity period from the Bank Manager, which was seen as disregarding the Tribunal's decision. The Tribunal noted that the Deputy Commissioner's action in directing the Bank Manager to extend the Bank Guarantee was not in line with judicial discipline. Consequently, the Tribunal directed that the Bank Guarantee need not be extended, and no recovery action should be taken by the authorities until the appeal is decided by the Tribunal.

Issue 2: Compliance with the stay order by the Deputy Commissioner of Customs regarding the Bank Guarantee
The key concern was the Deputy Commissioner of Customs' decision to request an extension of the Bank Guarantee validity period despite the Tribunal's stay order. The Tribunal found this action to be a violation of judicial discipline. The Tribunal explicitly directed the lower authority that the Bank Guarantee should not be extended, and no efforts to recover dues should be made until the appeal process is completed and decided by the Tribunal. This ruling emphasized the importance of respecting and adhering to the decisions and orders issued by the Tribunal, ensuring fair and just proceedings for all parties involved in the legal process.