Binding appellate order must be followed: customs authorities could not re-open refund maintainability or delay sanction after surrender of goods.

A subordinate customs authority could not refuse to implement a subsisting appellate order by re-agitating the maintainability of a refund claim that had already been decided; the earlier direction remained binding until stayed or set aside by a superior forum. The later rejection of the claim as premature was also inconsistent with the direction to take over the surrendered goods under the Surrender Certificate and then sanction the refund. The circular required expeditious disposal of such refund claims, so the Tribunal directed immediate compliance with its earlier order and expeditious processing and sanction of the refund.

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Issues: (i) Whether the authorities could refuse to implement the Tribunal's earlier order by re-agitating the maintainability of the refund claim. (ii) Whether the refund was required to be sanctioned on taking over the surrendered goods under the Surrender Certificate.

Issue (i): The earlier order had expressly decided the maintainability of the refund claim after examining the objection that assessment had not been challenged. An authority subordinate to the Tribunal could not disregard that binding direction in the absence of any stay by a superior forum. The rule of judicial discipline required compliance with the appellate order until it was suspended or set aside.

Conclusion: The authorities could not refuse implementation on the ground that the refund claim was not maintainable.

Issue (ii): The earlier order had directed the customs authorities to take over the surrendered goods under the Surrender Certificate and thereafter to sanction the refund. The subsequent communication rejecting the claim as premature was inconsistent with that direction. The applicable circular also required expeditious disposal of refund claims.

Conclusion: The refund was required to be sanctioned after taking over the surrendered goods under the Surrender Certificate.

Final Conclusion: The Tribunal directed immediate compliance with its earlier order and required the customs authorities to process and sanction the refund expeditiously.

Ratio Decidendi: A subordinate authority cannot refuse to implement a subsisting appellate order by re-opening an issue already decided by the appellate forum, unless the order has been stayed or set aside by a competent superior forum.

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