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1996 Supreme(Mad) 998
High Court of Judicature at Madras
THE HONOURABLE CHIEF JUSTICE MR. K.A. SWAMI AND THE HONOURABLE MR. JUSTICE RAJU
Assistant Commissioner of Customs, Tuticorin - Appellant
Versus
Neo Intex Mills Limited - Respondents
W.A. No. 889/96 & C.M.P. 13035 of 1996
Decided On : 26 September 1996
The court upheld the implementation of the Tribunal's order and emphasized the Customs Department's ability to insist on a customs surety or security bond to safeguard their interests.
Headnote:
Customs Department - Implementation of Tribunal Order - The court directed the respondents to implement the order of the Customs, Excise and Gold (Control) Appellate Tribunal, and allowed the appellants to secure an interim order from the Supreme Court. The Customs Department can insist on a customs surety or security bond to safeguard their interests.
Fact of the Case:
The court considered the order passed by the learned single Judge, which directed the respondents to implement the order of the Customs, Excise and Gold (Control) Appellate Tribunal, and extended the time for implementation by two weeks.
Finding of the Court:
The court dismissed the appeal and extended the time allowed for implementing the Tribunal's order. It also allowed the appellants to secure an interim order from the Supreme Court.
Issues: Implementation of Tribunal Order, Customs Surety or Security Bond
Ratio Decidendi: The court upheld the direction to implement the Tribunal's order and allowed the appellants to secure an interim order from the Supreme Court. It emphasized the Customs Department's ability to insist on a customs surety or security bond to safeguard their interests.
Final Decision: The appeal was dismissed, and the time allowed for implementing the Tribunal's order was extended by two weeks. A related motion was also dismissed.
The order under appeal passed by the learned single Judge does not in any way affect the interests of the Customs Department, inasmuch as the direction issued by the learned single Judge reads thus :-
"In view of the above, the respondents are directed to implement the order of the Customs, Excise and Gold (Control) Appellate Tribunal, South Zonal Bench, Madras in Appeal NOC/V-129/96/Md & C/V-130/96/Md, dated 18-5-1996 in accordance with law, within one week from the date of receipt of the copy of this order. It is open to the respondents to direct the petitioner to execute necessary customs surety or security bond to safeguard the interest of revenue to cover the disputed amounts, in case the contention of the revenue is accepted in appeal." *
Thus, if the appellants succeed before the Supreme Court, the respondent is liable to reimburse. Even otherwise, before the order of the Tribunal is implemented pursuant to the direction of the learned single Judge, if the appellants are able to secure the interim order from the Supreme Court, the question of implementing the order of the Tribunal does not arise. Whatever it may be, the learned single Judge has further safeguarded the interest of the appellants by enabling them to direct the writ petitioner to execute the necessary customs surety or security bond to safeguard the interest of the Revenue to cover the disputed amounts in case the contention of the appellants is accepted in appeal. That means, the Customs Department can very well insist for the solvent surety of the value sufficient to meet the amount involved in the case. It is not a mere personal bond. Unless the required surety with solvency certificate is furnished and accepted, the question of implementing the order of the Appellate Tribunal as directed by the learned single Judge does not arise.
2.With the above observations, the appeal is dismissed. However, the time allowed by the learned single Judge for implementing the order of the Tribunal is extended by two weeks from today.
3.C.M.P. No. 13035 of 1996 is also dismissed.
