Court orders release of imported Mulberry Raw Silk per Appeal Commissioner's decision, stressing compliance with appellate rulings.

The High Court allowed the writ petition, directing the release of the imported Mulberry Raw Silk as per the Appeal Commissioner's order. The court emphasized the importance of adhering to appellate authorities' decisions to prevent undue harassment to assessees and maintain judicial discipline in tax law administration.

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Issues:
Prayer for Writ of Certiorarified Mandamus to quash communication and direct release of imported Mulberry Raw Silk under specific Sales Contract.

Analysis:
The petitioner entered into a sales contract for the supply of Mulberry raw silk and imported a portion under the contract. The Department disputed the value of the goods leading to a show cause notice seeking to enhance the value significantly. The petitioner made representations, and the third respondent passed an order fixing the value for assessment higher than declared by the petitioner. The petitioner appealed to the Commissioner of Customs (Appeals), who set aside the order of the third respondent, directing the release of goods at the value accepted in the past. The third respondent then decided to release the goods provisionally with a 50% Bank Guarantee pending acceptance of the Appeal Commissioner's order.

The petitioner approached the High Court seeking the issuance of a Writ of Certiorarified Mandamus to quash the order for provisional release of goods with a Bank Guarantee. The High Court directed the Department to release the goods in terms of the Appeal Commissioner's order, setting aside the impugned order of the third respondent. The Additional Solicitor General conceded that the impugned order cannot be sustained and requested time to decide on filing an appeal. The High Court, without delving into the merits, set aside the impugned order and directed the release of the imported Mulberry Raw Silk as per the Appeal Commissioner's order by a specified date.

In conclusion, the High Court allowed the writ petition, directing the release of the goods and closing the connected proceedings without costs. The judgment emphasized the importance of following appellate authorities' decisions to avoid undue harassment to assessees and maintain judicial discipline in tax law administration.

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