2017 (11) TMI 479

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.... the order passed by the Appellate Authority in Appeal No.133 of 2001, dated 21.06.2001. The Hon'ble Supreme Court in the case of Union India vs. Kamlakshi Finanace Corporation Ltd., reported in (1991) 55 E.L.T. 433 (S.C.) pointed out as to what is judicial discipline while giving effect to orders of higher appellate authorities, which are binding on the lower appellate authorities. In Kamlakshi Finance Corporation Ltd. (supra), the case was somewhat similar to the case on hand, where the Assistant Collector was of the opinion that if he accepts the assessee s contention, the Department would lose revenue and would also have no remedy to rectify the order. One such action done by the Assistant Collector in his overzealous attempt to get ove....

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....subject matter of an appeal can furnished no ground for not following it unless its operation has been suspended by a competent Court. If this healthy rule is not followed, the result will only be undue harassment to assessees and chaos in administration of tax laws. 7. The impression or anxiety of the Assistant Collector that, if he accepted the assessee's contention, the department would lose revenue and would also have no remedy to have the matter rectified is also incorrect. Section 35E confers adequate powers on the department in this regard. Under sub-section (1), where the Central Board of Excise and Customs [Direct Taxes] comes across any order passed by the Collector of Central Excise with the legality or propriety of which i....

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....rd or the Collector so as to enable appropriate proceedings being taken under S. 35E(1) or (2) to keep the interest of the department alive. If the officer's view is that correct one, it will no doubt be finally upheld and the Revenue will get the duty, though after some delay which such procedure would entail." (emphasis supplied) 3. What has been deprecated by the Hon'ble Supreme Court in the above referred decision has been done by the Assistant Commissioner in his overzealous attempt to get over the order passed by the appellate authority. The issue arose in the following manner: 4. The petitioner was engaged in the business of textile printing and processing of fabrics. The petitioner paid a duty of Rs. 48,767/- on 30.09.1996. Th....