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TMI Blog2024 (3) TMI 1034X X X X Extracts X X X X X X X X Extracts X X X X ..... CORPORATION LTD. [ 1991 (9) TMI 72 - SUPREME COURT] where it was held that In the light of these amended provisions, there can be no justification for any Assistant Collector or Collector refusing to follow the order of the Appellate Collector or the Appellate Tribunal, as the case may be, even where he may have some reservations on its correctness. He has to follow the order of the higher appellate authority. This may instantly cause some prejudice to the Revenue but the remedy is also in the hands of the same officer. It is found that this appeal has been filed by the Revenue on the basis of an order passed by the Committee of Commissioners contrary to the principles of judicial discipline as laid down by the Supreme Court in Kamlakshi F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the goods manufactured by the job worker shall be used in or in relation to the manufacture of final products in his factory or removed without payment of duty from his factory under bond for export or to a 100% EOU or removed on payment of duty for home consumption from his factory and also undertakes responsibility of discharging the liabilities in respect of central excise duty leviable on the final products. 4. A show cause notice dated 20.02.2019 covering the period April 2016 to June 2017 was issued to the assessee demanding central excise duty of Rs. 53,51,886/- and proposing to impose an equal amount as penalty. The case of the Revenue is that the assessee was not entitled to the benefit of this exemption notification and therefore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s just done that. This principle was explained at length in Supreme Court decision in Union of India versus Kamlakshi Finance Corporation Ltd. [1991 (55) E.L.T. 433 (S.C.)] The relevant extracts of which are given below :- "6. Sri Reddy is perhaps right in saying that the officers were not actuated by any mala fides in passing the impugned orders. They perhaps genuinely felt that the claim of the assessee was not tenable and that, if it was accepted, the Revenue would suffer. But what Sri Reddy overlooks is that we are not concerned here with the correctness or otherwise of their conclusion or of any factual mala fides but with the fact that the officers, in reaching their conclusion, by-passed two appellate orders in regard to the same i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... department would lose revenue and would also have no remedy to have the matter rectified is also incorrect. Section 35E confers adequate powers on the department in this regard. Under sub-section (1), where the Central Board of Excise and Customs [Direct Taxes] comes across any order passed by the Collector of Central Excise with the legality or propriety of which it is not satisfied, it can direct the Collector to apply to the Appellate Tribunal for the determination of such points arising out of the decision or order as may be specified by the Board in its order. Under sub-section (2) the Collector of Central Excise, when he comes across any order passed by an authority subordinate to him, if not satisfied with its legality or propriety, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gested by the learned Additional Solicitor General that the observations made by the High Court, have been harsh on the officers. It is clear that the observations of the High Court, seemingly vehement, and apparently unpalatable to the Revenue, are only intended to curb a tendency in revenue matters which, if allowed to become widespread, could result in considerable harassment to the assessee-public without any benefit to the Revenue. We would like to say that the department should take these observations in the proper spirit. The observations of the High Court should be kept in mind in future and utmost regard should be paid by the adjudicating authorities and the appellate authorities to the requirements of judicial discipline and the n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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