Case-1-The mere fact that order is a subject a matter of further appeal can furnish no ground for not following it unless its operation has been suspended by a competent court-Union Of India And Others vs Kamlakshi Finance Corporation … on 24 September, 1991-Equivalent citations: AIR 1992 SC 711, 1994 (46) ECC 129, 1991 ECR 486 SC, 1991 (55) ELT 433 SC, JT 1992 (1) SC 85, 1991 (2) SCALE 635, (1992) 1 SCC 648, 1992 Supp (1) SCC 443, 1991 (2) UJ 617 SC
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 – in itself an objectionable phrase – and is the subject matter of an appeal can furnish no ground for not following it unless its operation has been suspended by a competent court. If this healthy rule is not followed, the result will only be undue harassment to assessees and chaos in administration of tax laws.
Case-2- As is well-known, mere filing of an appeal does not operate as a stay or suspension of the order appealed against-Collector Of Customs, Bombay vs M/S. Krishna Sales (P) Ltd. on 9 September, 1993 Equivalent citations: AIR 1994 SC 1239, 1994 (73) ELT 519 SC, 1993 (4) SCALE 228, 1994 Supp (3) SCC 73
According to the said para 4, the goods will not be released even where the party succeeds in cases where the customs authorities decide to go in appeal before the Tribunal or the Supreme Court. They will consider the issuance of such certificate only after the decision of the Tribunal or the Supreme Court, as the case may be. The learned Counsel for the respondent characterises the said direction as arbitrary and contrary to law. We see the force in his submission. If the authorities are of the opinion that the goods ought not to be released pending the appeal, the straight-forward course for them is to obtain an order of stay or other appropriate direction from the Tribunal or the Supreme Court, as the case may be. Without obtaining such an order they cannot refuse to implement the order under appeal. As is well-known, mere filing of an appeal does not operate as a stay or suspension of the order appealed against. Moreover, such detention is likely to create several complications relating to the demurrage charges besides the possible deterioration of the machinery and goods. We hope and trust that the Collector of Customs, Bombay shall appropriately revise the said public notice in the light of the observations made herein. If he does not do so, there is a likelihood of the customs authorities being themselves made liable for demurrage charges in appropriate cases.
Case-3-The mere filing of an appeal against the order of the appellate authority, and the pendency of the said appeal, cannot be shown as sufficient grounds for not giving effect to the order of the Commissioner of Customs (Appeals), dated 16.9.2011. M/S. Supra Bio-Tech vs 3 The Additional Commissioner on 24 January, 2012-(Mad HC)
17. The mere filing of an appeal against the order of the appellate authority, and the pendency of the said appeal, cannot be shown as sufficient grounds for not giving effect to the order of the Commissioner of Customs (Appeals), dated 16.9.2011. Even though the National Centre for Mass Spectrometry, Indian Institute of Chemical Technology, Hyderabad, had by its communication, dated 9.12.2010, had opined that the samples of the goods imported sent to it, did not show any presence of pesticides or Oxymatrine, the refusal of the respondents to release the goods in question cannot be held to be valid in the eye of law.
Case-4-Order of CESTAT to be followed unless stay obtained by the Department against the order-Pushpanjali Silks Private Ltd., Vs. CC of Customs and another- W.P.No.9284 of 2006 (Mad HC)
Considering the above submissions made by the learned counsel for the petitioner as well as the Additional Solicitor General, I am of the view that the third respondent is duty bound to implement the orders passed by the Appellate Authority and he cannot flout the orders by not releasing the goods covered by the Bill of Entry in question. As laid down by the Hon’ble Supreme Court in 1991 (55) E.L.T. 433 judicial discipline would require that the authorities are bound by the decision of the Tribunal or the Appellate Authority. Admittedly, though the CESTAT pronounced Final Order No.174/2006 dated 20.3.2006, the Revenue has not so far obtained any order from the CESTAT suspending the operation of the said order. It is not the case of the Revenue that the order of the CESTAT has been stayed by the Hon’ble Supreme Court of India. Therefore, I am of the view that the principle laid down by the Apex Court of the land in 1991 (55) E.L.T. 433 has to be applied and the third respondent should follow unreservedly the orders of the CESTAT, Chennai.
Case- Question of applicability of provisions struck down by another High Court unless the Supreme Court upsets the order or stays the operation of Order-Dr.T.Rajakumari vs The Government Of Tamil Nadu on 3 August, 2016-(Mad HC)
The accepted undisputed position is that the Hon’ble Supreme Court has not stayed the operation of the Delhi High Court order dated 17.02.2016 striking down Section 2(p) of Pre-natal Diagnostic Techniques (Prohibition of Sex Selection) Act, 1994, Act (hereinafter called ”PNDT Act”). Consequently, Rule 3(3)(1)(b) of the PNDT Act have also been struck down as ultra vires the Act.
3.In view of the aforesaid position, it is accepted that the law would be finally laid down by the Hon’ble Supreme Court and thus there is no point in keeping this petition pending and whatever the declaration of law by the Hon’ble Supreme Court would be equally applied. The only question is as to what would happen till the Hon’ble Supreme Court examines the issue. In this behalf, if the Hon’ble Supreme Court had stayed or would stay the operation of the Judgment, then only could those provisions struck down again come in force.
4. It is trite to say that once a High Court has struck down the provisions of the Central Act, it cannot be said that it would be selectively applied in other States. Thus, there is no question of applicability of provisions struck down by the High Court as of now until and unless the Hon’ble Supreme Court upsets the Judgment or stays the operation of the Judgment.