2021 (2) TMI 391 - HC - Customs

Provisional release of goods - allegation is that the order of the appellate authority has not been complied with by the lower authority thereby causing serious prejudice to the petitioner - time limitation - HELD THAT - The appellate order is dated 18.09.2020 and we are now in February, 2021. More than four months have gone by without compliance. In UNION OF INDIA VERSUS KAMLAKSHI FINANCE CORPORATION LTD. 1991 (9) TMI 72 - SUPREME COURT , Supreme Court held and reiterated that the principles of judicial discipline require that the orders of the higher appellate authorities should be followed unreservedly by the subordinate authorities. The mere fact that the order of the appellate authority is not acceptable to the department, which in itself is an objectionable phrase, and is the subject matter of an appeal can be no ground for not following the appellate order unless its operation had been suspended by a competent court. If this healthy rule is not followed, the result will only be undue harassment to the assessee and chaos in administration of the tax laws. Adverting to the facts of the present case, all that the appellate authority has held is to allow amendment to the concerned bills of entry and thereafter has directed the original authority to take a decision on the request of the petitioner for provisional release of the goods within six weeks, which period had expired long back - there are no valid reason or justification for non-compliance to such order of the appellate authority. The respondent Nos.4 and 5 is directed to carry out the order-in-appeal passed by the Commissioner of Customs (Appeals) dated 18.09.2020 within seven days from the date of receipt of a copy of this order, if necessary, by giving a hearing to the authorized representative of the petitioner - petition allowed.

Summary

Issues:
Non-compliance with the appellate order by the lower authority.

Detailed Analysis:
The judgment involves two writ petitions heard together, where the petitioner, a company engaged in importing and trading metals, faced a dispute with a high seas buyer resulting in the cancellation of an agreement. The petitioner sought to substitute its name as the importer in place of the high seas buyer for clearance of consignments, which were subsequently detained and seized by the authorities. The petitioner filed a writ petition, leading to an order for provisional release of goods by the Commissioner of Customs (Appeals) dated 18.09.2020. However, the lower authorities failed to comply with this order, prompting the petitioner to file the present writ petition due to serious prejudice caused by non-compliance.

The judgment highlighted the importance of judicial discipline in following orders of higher appellate authorities. Referring to legal precedents, the court emphasized that unless an appellate order's operation is suspended by a competent court, it must be followed unreservedly by subordinate authorities to avoid undue harassment to the parties involved and maintain the efficacy of the legal system. The court cited instances where non-compliance with appellate orders led to chaos and undermined administrative discipline, adversely affecting the statutory appellate remedies available to litigants.

In the present case, the appellate order directed the original authority to amend the bills of entry and decide on the provisional release of goods within six weeks, a period that had elapsed without compliance. The court noted the lack of valid reasons or justifications for non-compliance with the appellate order by the lower authorities. The reply affidavit provided vague and incomplete information regarding the review process and the filing of further appeals, failing to address the petitioner's concerns adequately. Consequently, the court directed the concerned authorities to implement the appellate order within seven days, emphasizing the importance of timely compliance and providing a hearing to the petitioner's representative if necessary.

Ultimately, both writ petitions were allowed to the extent indicated above, with no order as to costs, and all parties were instructed to act based on the authenticated copy of the judgment and order. The judgment serves as a reminder of the significance of upholding judicial discipline and timely compliance with appellate orders to ensure the effective administration of laws and protect the rights of litigants.