2022 (12) TMI 153 - HC - Customs

Refund of IGST - initiation of fresh proceedings/filing of appeals by the respondents - HELD THAT - Learned senior standing counsel for the respondents fairly submits, on instructions, that immediate steps will be taken by the respondents to withdraw the appeals, stated to have been filed against the IGST refund order/s dated 04.05.2021, and further expeditious steps will also be taken to forthwith withdraw the consequential protective show cause notice/s stated to have been issued to the petitioners. It is assured that the necessary steps in this regard shall be taken latest within a period of four weeks from today.

Summary

Issues:
1. Alleged wilful disobedience of a court order for refund of IGST.
2. Filing of appeals against the refund order despite court directions.
3. Contention of breach of court directions by initiating fresh proceedings.
4. Dismissal of SLP filed against the court order by the Supreme Court.
5. Assurance by respondents to withdraw appeals and show cause notices.

Analysis:

1. The petitioners alleged wilful disobedience of a court order dated 26.03.2021, directing the respondents to refund the IGST with interest. The refund was made as per the court's order, but the respondents filed appeals against it, contrary to the court's directions for compliance.

2. The filing of appeals by the respondents against the IGST refund order dated 04.05.2021 was deemed to be in direct violation of the Division Bench's directions in the judgment/order dated 26.03.2021. This act was considered as going against the court's explicit instructions.

3. During the proceedings, it was noted that the respondents intended to file an SLP against the court order dated 26.03.2021. The petitioners contended that such actions by the respondents, including initiating fresh proceedings and filing appeals, were clear breaches of the court's directions in the earlier judgment passed by the Division Bench.

4. The Supreme Court dismissed the SLP filed by the respondents against the judgment/order dated 26.03.2021 on 14.10.2022. This dismissal signified the finality of the court's decision and indicated that the respondents were expected to comply with the initial order for IGST refund.

5. Following the dismissal of the SLP, the respondents, through their senior standing counsel, assured the court that they would take immediate steps to withdraw the appeals filed against the IGST refund order and also withdraw any protective show cause notices issued to the petitioners. The respondents committed to completing these actions within four weeks from the date of the assurance, thereby resolving the matter satisfactorily.

In conclusion, based on the assurance provided by the respondents to withdraw the appeals and show cause notices as per the court's directions, the petitions were disposed of without the need for further orders. The case highlighted the importance of complying with court orders and refraining from actions that contravene explicit judicial directions.