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2016 (11) TMI 304 - HC - CustomsRelease of goods - Redemption fine - Penalty - Stay petition - Held that - mere filing of the revision against the order of appellate authority would not empower the respondent to deny release of the goods in question and the respondent have not given any proper explanation as to why no stay order has been obtained against the order of the Commissioner of Customs (Appeals) dated 24.08.2015, even though the said order said to have been challenged by way of further appeal - Decided in favor of the assessee.
Issues Involved:
1. Detention and confiscation of goods by Customs authorities. 2. Non-implementation of the appellate authority's order by the Customs authorities. 3. Filing of revision petition by the respondent and its impact on the implementation of the appellate order. 4. Judicial discipline and compliance with appellate orders. 5. Legal precedents supporting the implementation of appellate orders despite pending revisions. Detailed Analysis: 1. Detention and Confiscation of Goods by Customs Authorities: The petitioner, upon arriving from Dubai, was intercepted by Customs at Chennai International Airport and had 3 gold bars weighing 349.2 grams detained. The Joint Commissioner of Customs confiscated the goods under Section 111(d)(I) of the Customs Act and Section 3(3) of the Foreign Trade (Development & Regulation) Act, 1992. The petitioner was allowed to redeem and re-export the goods upon paying a redemption fine of ?3,25,000 and a penalty of ?75,000. 2. Non-implementation of the Appellate Authority's Order by the Customs Authorities: The petitioner appealed against the Joint Commissioner's order, and the Commissioner of Customs (Appeals) reduced the redemption fine to ?1,50,000 and the penalty to ?50,000. Despite the appellate order dated 24.08.2015, the respondent did not implement it, prompting the petitioner to file a writ petition for mandamus. 3. Filing of Revision Petition by the Respondent and Its Impact on the Implementation of the Appellate Order: The respondent claimed to have filed a revision petition along with a stay petition under Section 129DD of the Customs Act, 1962, which was pending. The respondent argued that the petitioner should have approached the revisional authority or awaited its decision, rendering the writ petition not maintainable. However, the court noted that no proof of the revision petition being taken on file or any notice to the petitioner was provided. 4. Judicial Discipline and Compliance with Appellate Orders: The court emphasized the principle of judicial discipline, requiring subordinate authorities to follow appellate orders unless stayed by a competent court. The court cited several precedents, including the Supreme Court's ruling in Union of India vs. Kamalakshi Finance Corporation, which criticized the failure of revenue officers to implement appellate orders, causing undue harassment and chaos in tax administration. 5. Legal Precedents Supporting the Implementation of Appellate Orders Despite Pending Revisions: The court referenced multiple cases where it was held that mere filing of an appeal or revision does not operate as a stay. Notable cases included: - Union of India vs. Kamalakshi Finance Corporation: Emphasized the binding nature of appellate orders on subordinate authorities. - Pushpanjali Silks Private Ltd. vs. CC of Customs: Directed the release of goods as per the appellate order, highlighting the need for judicial discipline. - Collector of Customs, Bombay vs. Krishna Sales (P) Ltd.: Stated that authorities must obtain a stay order if they wish to prevent the release of goods pending appeal. Conclusion: The court concluded that the respondent's failure to implement the appellate order without obtaining a stay was unjustified. The petitioner was entitled to the release of the detained goods for re-export, subject to compliance with the conditions imposed by the appellate authority. The court directed the respondent to release the goods within two weeks and dispose of the revision petition within eight weeks if no stay was obtained. Orders: (a) The respondent is directed to release the goods for re-export upon the petitioner complying with the appellate authority's conditions within two weeks. (b) If no stay is obtained in the revision petition, the main revision petition shall be disposed of within eight weeks. No costs.
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