1987 (4) TMI 471 - HC - VAT and Sales Tax

Summary

Issues Involved:
1. Disobedience of High Court judgment by a Commercial Tax Officer.
2. The validity of the Commercial Tax Officer's refusal to follow the High Court's decision based on a pending appeal.
3. The implications of not following High Court judgments by subordinate authorities.

Issue-wise Detailed Analysis:

1. Disobedience of High Court Judgment by a Commercial Tax Officer:
Modern Proteins Ltd., Kurnool, was assessed to sales tax, and the dispute over the tax rate on protein flour was resolved in favor of the assessee by the High Court in T.R.C. No. 40 of 1982, which held that protein flour is edible de-oiled cake taxable at 1 1/4 per cent. Despite this, for the assessment year 1982-83, the Commercial Tax Officer-I, Kurnool, levied a 4 per cent tax, citing a pending appeal in the Supreme Court against the High Court's decision.

2. The Validity of the Commercial Tax Officer's Refusal to Follow the High Court's Decision Based on a Pending Appeal:
The Commercial Tax Officer's refusal to implement the High Court's decision was based on the claim of a pending appeal in the Supreme Court. However, there were no details provided about the appeal, such as special leave, civil appeal number, or any stay order from the Supreme Court. The High Court found this claim to be recklessly made and without substantiation, indicating a prima facie case of contempt.

3. The Implications of Not Following High Court Judgments by Subordinate Authorities:
The High Court emphasized that subordinate authorities must follow its decisions unless there is a suspension of the judgment by the Supreme Court. The court cited several precedents, including East India Commercial Co. Ltd. v. Collector of Customs, which asserted that administrative tribunals cannot ignore the law declared by the highest court in the state. The court also referenced cases where contempt proceedings were initiated against officials who disregarded High Court judgments, such as Dibakar v. Chief Justice of Orissa High Court and Baradakanta Mishra v. Bhimsen Dixit. The court underscored that failure to follow its decisions undermines respect for the law and the constitutional authority of the High Court.

Conclusion:
The High Court found the Commercial Tax Officer guilty of contempt for refusing to follow its judgment. Although the officer expressed an unqualified apology and attributed his actions to inadvertence and work pressure, the court took a lenient view and accepted the apology, thereby dropping further proceedings. The judgment serves as a stern warning to all subordinate authorities to adhere to High Court decisions unless explicitly suspended by the Supreme Court. The case was disposed of without costs.