Appellate customs orders must be obeyed unless stayed, requiring release of imported goods under the exemption notification.

Customs authorities must give effect to an operative appellate order granting exemption under Notification No. 113/81-Cus. and cannot withhold clearance of imported goods in the absence of any stay by a competent court. The governing principle is that revenue authorities are bound by appellate orders until their operation is suspended or overturned. On that basis, the goods were directed to be released on payment of the usual customs duty.

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Issues: Whether the customs authorities were bound to implement the appellate order granting the benefit of Notification No. 113/81-Cus. and to release the imported goods in the absence of any stay order.

Analysis: The appellate authority had already allowed the assessee's appeal and directed assessment of the goods by extending the benefit of the exemption notification. No material was placed before the Court to show that any higher forum had stayed that order. In such circumstances, the subordinate customs authorities could not refuse to act on the operative appellate order. The decision also proceeded on the well-settled principle that revenue authorities are bound by appellate orders and must follow them unless their operation is suspended by a competent court. The Court therefore directed compliance with the appellate order and release of the goods on payment of the usual customs duty.

Conclusion: The customs authorities were bound to give effect to the appellate order, and the petitioner was entitled to release of the goods.

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