1993 (12) TMI 140 - AT - Customs

Collector's Compliance with Tribunal Order Upheld, Emphasizing Judicial Duties and Legal Obligations

The Collector complied with the Tribunal order after a delay, confirmed by the Advocate for the Appellants and accepted by the Respondents. The judgment ... Incidental and ancillary powers of a tribunal - powers of the tribunal to make its orders effective - consequential effect of appellate/tribunal orders - duty of subordinate authorities to obey superior court orders - compliance with tribunal ordersCompliance with tribunal orders - consequential effect of appellate/tribunal orders - Whether the order passed by the Tribunal had been complied with and given consequential effect by the Collector. - HELD THAT: - The Court recorded that the Tribunal's order dated 18-12-1991 had been complied with by the Collector, albeit the consequential effect was given only after a delay of about two years. On enquiry, the appellants' counsel stated that the consequential effect had been given about a month prior to the hearing. The Court noted the delay in implementing the Tribunal's order but accepted that compliance had been effected. [Paras 1, 6]It was recorded that the Collector had given consequential effect to the Tribunal's order, although belatedly.Incidental and ancillary powers of a tribunal - powers of the tribunal to make its orders effective - The legal principle regarding the Tribunal's powers to employ incidental and ancillary means to make its statutory powers effective. - HELD THAT: - Relying on the Supreme Court's decision in Union of India v. Paras Laminates (P) Ltd., the Court reiterated that the Tribunal, as a judicial body, possesses not only the powers expressly conferred by statute but also such incidental and ancillary powers as are reasonably necessary to make the express grant of jurisdiction effective. The implied powers are limited by the express grant and are confined to those essential for execution of the conferred jurisdiction. [Paras 2]The Court endorsed the principle that a tribunal has incidental and ancillary powers necessary to make its express statutory powers efficacious.Duty of subordinate authorities to obey superior court orders - consequential effect of appellate/tribunal orders - Whether Revenue authorities are required to give prompt consequential effect to orders passed by the Tribunal and superior courts. - HELD THAT: - The Court observed that Revenue authorities have been casual in implementing Tribunal orders and affirmed the duty of lower authorities to obey orders of superior courts. It admonished the Revenue to be prompt in giving consequential effect to Tribunal orders in accordance with law and directed that copies of this order be furnished to the parties and to senior Revenue functionaries to ensure compliance. [Paras 6]The Court directed that Revenue authorities must promptly give consequential effect to Tribunal orders and ordered circulation of the Court's order to relevant revenue authorities and the parties.Final Conclusion: The Court recorded that the Collector had belatedly complied with the Tribunal's order, reiterated the tribunal's incidental and ancillary powers to make its orders effective, admonished Revenue authorities to promptly give consequential effect to such orders, and directed circulation of this order to the parties and senior revenue authorities. Issues: Compliance with Tribunal order, Powers of the Tribunal, Duty of Revenue authorities to obey superior court ordersThe judgment pertains to the compliance of a Tribunal order by the Collector, as represented by the learned Advocate for the Appellants and the learned SDR for the Respondents. The Tribunal's order was passed on a specific date, and the consequential effect was acknowledged after a delay of almost two years. The Advocate for the Appellants confirmed compliance by the Collector, and the SDR for the Respondents accepted the same. However, there was a discrepancy in the timeline of when the consequential effect was given, with the Advocate stating it was about a month back. This issue highlights the importance of timely compliance with Tribunal orders by the concerned authorities.The judgment references the powers of the Tribunal as elucidated by the Hon'ble Supreme Court in the case of Union of India v. Paras Laminates (P) Ltd. The Supreme Court emphasized that the Tribunal functions as a court within its jurisdiction and possesses powers expressly conferred by statute. It further explained that the Tribunal, being a judicial body, has both express and implied powers necessary for the effective exercise of its statutory powers. The implied powers are limited by the express grant and are essential for executing acts reasonably necessary to make the grant effective. This analysis underscores the scope and limitations of the Tribunal's powers in adjudicating matters within its defined jurisdiction.Moreover, the judgment cites the decision of the Hon'ble Supreme Court in the case of Union of India v. Kamlakshi Finance Corporation Ltd., emphasizing the importance of the Tribunal's jurisdiction and the powers granted for its effective functioning. The Supreme Court's ruling underscores that the Tribunal's powers, though limited and within defined jurisdiction, include both express and implied grants necessary for executing its functions. This reference reinforces the significance of understanding the Tribunal's jurisdiction and powers in the context of legal proceedings.Additionally, the judgment refers to the decision of the Hon'ble Bombay High Court in the case of Nemichand Bhikamchand Jain v. Collector of Customs (P), highlighting the judicial stance on certain legal matters. The judgment also alludes to the decision of the Hon'ble Bombay High Court in the case of Samrat Shipping Co. Pvt. Ltd. v. Additional Collector of Customs, Bombay and Another, providing further legal context to the issues at hand. These references serve to enrich the legal analysis by incorporating relevant judicial precedents and interpretations to support the Tribunal's decision-making process.Furthermore, the judgment addresses the conduct of Revenue authorities concerning Tribunal orders, expressing concern over the casual approach adopted by such authorities. It emphasizes the duty of lower authorities to promptly obey orders passed by superior courts, stressing the importance of adhering to legal directives. The judgment calls for increased vigilance from Revenue authorities in giving consequential effect to Tribunal orders in accordance with the law. This directive aims to ensure compliance with legal obligations and uphold the integrity of the judicial process. The judgment instructs the dissemination of its order to relevant authorities, including the Revenue Secretary and the Chairman of the Central Board of Excise & Customs, to reinforce the importance of adherence to legal mandates.