Binding appellate customs orders must be implemented unless stayed; persistent defiance can trigger costs and contempt reference.

An appellate customs order permitting re-export remained binding because it had not been stayed, and subordinate authorities were required to comply despite a pending appeal. The Tribunal held that continued withholding of the goods was contrary to judicial discipline and directed implementation of the earlier re-export order. It further found deliberate non-compliance after repeated opportunities and existing revenue safeguards, imposed costs on the concerned Commissioner, and referred the matter to the High Court for consideration of contempt proceedings.

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Issues: (i) Whether the customs authorities were bound to implement the Tribunal's earlier directions permitting re-export of the goods. (ii) Whether continued non-compliance justified imposition of costs and reference for contempt action.

Issue (i): Whether the customs authorities were bound to implement the Tribunal's earlier directions permitting re-export of the goods.

Analysis: The Tribunal found that its earlier order permitting re-export had not been stayed and had been followed by further directions under Rule 41 of the CESTAT (Procedure) Rules, 1982 requiring compliance on deposit of a bank guarantee. It held that subordinate authorities were bound by the appellate order and that pendency of an appeal, without a stay, furnished no ground to disregard it. The Tribunal treated the continued withholding of the goods as contrary to judicial discipline and inconsistent with the binding effect of its own orders.

Conclusion: The customs authorities were directed to implement the earlier order permitting re-export.

Issue (ii): Whether continued non-compliance justified imposition of costs and reference for contempt action.

Analysis: The Tribunal recorded deliberate and repeated non-compliance despite repeated opportunities, prior compliance orders, and safeguards already built in to protect revenue through the bank guarantee. It held that the conduct warranted deterrent consequences, imposed monetary costs on the concerned Commissioner, and referred the matter to the jurisdictional High Court under the Contempt of Courts Act, 1971 for consideration of contempt proceedings.

Conclusion: Costs were imposed and the matter was referred for contempt consideration.

Final Conclusion: The application succeeded, and the Tribunal enforced its earlier re-export direction while also imposing sanctions for wilful disobedience and seeking contempt scrutiny by the High Court.

Ratio Decidendi: An appellate order remains binding and must be implemented unless stayed by a competent court, and persistent defiance of such an order may justify costs and contempt reference.

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