2013 (9) TMI 140 - AT - Customs

Validity of order stay application - whether the CESTAT order should be accepted or an appeal should be filed Held that - the act of the revenue clearly shows that the departmental officers had no respect to the orders of the Tribunal as well as the orders of the Hon ble High Court of Bombay - the concerned officer was directed to comply with the order of the Hon ble High Court of Bombay within 2 days failing which show-cause notice will be issued to the concerned officer - Tribunal dismissed stay application and also dismissed the appeal filed by the revenue - revenue was bound by the undertaking given by the Revenue to comply the order decided against the revenue.

Summary

Issues:
1. Compliance of CESTAT order for release of seized goods.
2. Failure to comply with the order of the Hon'ble High Court.
3. Contempt of court proceedings for non-compliance.

Issue 1 - Compliance of CESTAT order for release of seized goods:
The matter involved the compliance of the CESTAT order dated 11.02.2013 regarding the release of 10% of seized goods kept as security. The Commissioner (A.R) informed that the Chief Commissioner of Customs was considering whether to accept the CESTAT order or file an appeal against it. Pending a final decision, the release of the goods was kept pending as per the Chief Commissioner's directions.

Issue 2 - Failure to comply with the order of the Hon'ble High Court:
The judgment referred to an order passed by the Hon'ble Bombay High Court in Writ Petition no. 6977 of 2012. The Court had directed that if stay was not granted by CESTAT, the order-in-original should be implemented within six weeks from the communication of CESTAT's order. However, it was noted that neither the High Court's order was complied with nor any stay against CESTAT's order dated 09.10.2012 was obtained by the revenue.

Issue 3 - Contempt of court proceedings for non-compliance:
As a result of the revenue's failure to comply with the High Court's order and CESTAT's decision, the Tribunal directed the concerned officer to comply with the High Court's order within two days. Failure to do so would result in a show-cause notice being issued for contempt of court proceedings. The notice was returnable on 18.02.2013, emphasizing the importance of respecting and adhering to court orders.

In conclusion, the judgment highlighted the significance of compliance with court orders, both from CESTAT and the High Court, and the consequences of failing to adhere to such directives. It underscored the obligation of the revenue department to respect and implement the decisions of the judiciary without delay, emphasizing the importance of upholding the rule of law in legal proceedings.