1994 (9) TMI 209 - AT - Customs

Summary

Issues:
1. Entitlement to market value of goods in question.
2. Applicability of Orissa High Court decision regarding granting compensation.
3. Authority of the Tribunal to grant market value of goods.
4. Precedents from Calcutta High Court and Supreme Court regarding similar cases.
5. Binding nature of decisions from superior courts on the Tribunal.

Analysis:

1. The main issue in this case was the entitlement of the applicant to the market value of the goods in question, specifically a V.C.R. The applicant sought payment for the marketable value of the V.C.R. as on the date in question, as per an earlier order by the Tribunal allowing redemption of the V.C.R. for a fine. However, the Department informed the applicant that the V.C.R. had already been sold for a lower sum, leading to the contention by the applicant's advocate for the market value to be paid.

2. The advocate for the applicant relied on a decision of the Orissa High Court in a case involving the Tribunal's power to grant compensation based on market value. The Orissa High Court held that the Tribunal lacked inherent power to grant such compensation, as seen in the case of Golden Hind Shipping Company. Despite the Tribunal granting market value in that case, the High Court ruled against the Tribunal's authority in this regard.

3. The question of whether the Tribunal had the authority to grant market value of goods was a crucial aspect of the case. The advocate contended that a Supreme Court decision mandated the return of goods or payment of their value when a confiscation order was set aside. However, the Tribunal's power to grant compensation, as highlighted by the Orissa High Court, was disputed, with the Supreme Court decision not explicitly granting such authority to the Customs Tribunal.

4. Precedents from the Calcutta High Court and the Supreme Court were cited to support the applicant's claim for market value. A case from the Calcutta High Court involving the return of gold and payment of market value when return was not feasible was mentioned. However, these precedents did not establish the Tribunal's inherent power to grant such relief, instead indicating that parties should approach the Civil Court for such matters.

5. The Tribunal's obligation to follow decisions of the High Court under whose jurisdiction it operates was emphasized. The Tribunal, being under the superintendence of the Orissa High Court, was bound by the Orissa High Court's ruling that the Tribunal lacked the authority to grant market value compensation. As there were no conflicting decisions from the Calcutta High Court, the Tribunal dismissed the application based on the binding nature of the Orissa High Court's decision.

In conclusion, the Tribunal dismissed the application, highlighting the lack of inherent power to grant market value compensation based on the Orissa High Court's ruling and the binding nature of decisions from superior courts on the Tribunal.