MR. SARFRAZ AHMAD KHAN, MEMBER (TECHNICAL).-(1). Through this C. M. Collector of Customs, Lahore requested for grant of extension of sixty days for disposal of the cases as directed by the Tribunal vide its judgment dated 20.01.2004 in Appeal No. 1648/LB/2003 for deciding the cases within forty-five days. The cases in question were earlier remanded by the Tribunal to the Collector of Customs, Lahore vide its judgment dated 19.06.2001 in Appeal No. 1263/LB/2002 which applied to 120 cases. Instead of disposal of those cases in compliance with the remand order dated 19.06.2001 of the Tribunal another order dated 03.03.2003 was passed by the Collector of Customs which was issued vide C. No. V- Cus/Misc./CFS/G-II/24/1564. Feeling aggrieved from the said order dated 03.03.2003, appellant filed appeal before this Tribunal which vide its order dated 20.01.2004 in Appeal No. 1648/LB/2003 set aside Collector's order dated 03.03.2003 and order that the cases remanded earlier by the Tribunal vide its judgment dated 19.06.2003 be decided within 45 days alongwith corresponding refund applications.
2. The C. M. Came up for hearing before the Tribunal on 30.03.2004 wherein following orders were passed:- "2. Before request of the Collector of Customs, Lahore for grant of extension for 60 days is taken up the learned SDR has to prove as to-(i) What steps were taken by the Collector for disposal of the cases in compliance with the Tribunal's judgment dated 19.06.2001 in Appeal No. 1263/LB/2000 which were also applied to 120 other identical cases till the time that Collector of Customs, Lahore passed the aforementioned order dated 03.03.2003? How many hearings were held during this period and what was the result? (ii) On the basis of this pace of compliance of the Tribunal's order, the Tribunal has to be satisfied that exactly how long it is going to take in disposal of these cases."
3. The learned SDR submitted report dated 31.03.2004 signed by Collector of Customs, Lahore on the issues raised by the Tribunal vide its interim order dated 30.03.2004, which is reproduced below for the sake of reference:- The report on the issues as per direction of the Honourable Appellate Tribunal, is as under:-- (i&ii) Soon after the Honourable Appel late Tribunal's judgment dated 19.06.2001 in which the cases were remanded back to the Collector of Customs to decide the cases himself or pass it to Officer of Competent Jurisdiction, the learned counsel of the respondent i.e. M/s. Millat Tractors Limited filed refund application for the refund of a portion of the amount of duty and taxes recovered from them after adjudication of the cases at different forums. The refund application was exam ined in line with the aforesaid judgment and certain clarification were required to be sought from the Board before deciding the remanded cases and disposal of the refund applications.
The aforesaid judgment of the Honourable Tribunal itself contained that in case of conflict between the USDP and the CGO. 7/1998, dated 24.03.1998, the matter may be referred to the Central Board of Revenue for a decision. As the USDP was not in line with the said CGO, a detailed reference was accordingly made to the Board vide Letter C.
No. VCusfMisc./CFS(G-1 1)-24/2000/52, dated 26.01.2002. The correspondence with the Board was in progress, however in the meantime, the party filed a writ petition in the Honourable Lahore High Court bearing No. 16775/2002 and the Honourable Lahore High Court passed the following judgment dated 16.09.2002:-- ...........let the petitioner move Collector Customs, Lahore who shall entertain the applications and decide the same within 30 days of its presentation strictly in accordance with law ."
The aforesaid 30 days period was subsequently extended by the Honourable Court. The respondents were granted hearing opportunities on 23.12.2002 and after considering all the facts of the case, the Collector of Customs issued Order dated 03.03.2003 in compliance with the direction of the Honourable Lahore High Court. It is worth mentioning that aforesaid order was pass ed after receipt of Board's clarification vide Letter C. No. 1(26)S&R-2184, dated 27.02.2003 in response to the aforesaid Collectorate's reference.
(iii) Since the remanded cases were still required to be formally adjudicated, adjudication proceedings were started and following dates were fixed.
S.No. Date of HearingBrief of Proceedings
1. 08.12.2003 No one appeared from the respondents.
2. 26.12.2003 Hearing could not be held as the Collector of Customs was out of city on of ficial tour .
3. 15.01.2003 Hearing could not be held as the Honourable Appellate Tribunal stayed the proceedings vide its order dated 13.01.2004.
On receipt of the Honourable Appellate Tribunal's judgment dated 20.01.2004, hearing was fixed on 19.03.2004 but the hearing could not be held as the adjudicating authority was pre-occupied in a seminar. Next hearing has been fixed on 09.04.2004.
In view of the aforesaid the Honourable Appellate Tribunal may grant extension of 60 days for the decision of the cases as earlier requested.".
4. In the said report, the second issue raised by the Tribunal vide its interim order dated 30.03.2004, which is reproduced below, has remained un-answered: "(ii) On the basis of this pace of compliance of the Tribunal's order, the Tribunal has to be satisfied that exactly how long it I s going to take in disposal of these cases." During hearing the learned SDR and the Appraiser accompanying him were asked specifically whether the applicant (the Collector of Customs, Lahore) is ready to make written commitment that the cases shall be fir tally disposed of on its merits within the extended period of 60 day:;? As requested vide C. M. No. 54/2004. To this the learned SDR gave the following response:--
(i) Section 223 of the Customs Act, 1969 provides protection to the adjudicating officer that no interference can be done in his adjudication work.
(ii) Directions of the Tribunal to the applicant vide its judgment dated 20.01.2004 in Appeal No. 164 8/LB/2003 for deciding the cases within 45 days of date of issuance of the judgment were directory in nature and not mandatory for compliance. '
(iii) The applicant has moved C. M. For grant of extension by 60 days and an effort shall be made to finalise those cases within the extended period but written commitment to finalize the cases within the extended period of 60 days cannot be given because of any unforeseen and unavoidable compelling circumstances.
5. The learned counsel appearing on behalf of the respondent (the appellant) gave following arguments:-
(a) Section 223 of Customs Act, 1969 is not applicable upon the Tribunal in this case since the Tribunal was a judicial forum and an Appellate Authority for the Collector of Customs and it was not an administrative forum, which was debarred from interfering with the adjudication work of any adjudicating officer.
(b) In tern, ts of sub-section (1) of the Section 194-B of Customs Act, 1969 "the Tribunal can pass such decision or order with such directions as the Appellate Tribunal may think fit.............. " and in terms of sub-section (4) of Section 194-B ibid "an order passed by the Appellate Tribunal in appeal shall be final". Accordingly compliance of the Tribunal's order was mandatory.
(c) Refusal of the applicant to give written commitment to dispose of the cases within the requested extended period of 60 days and saying that an effort shall be made to dispose of those cases is contemptuous. The cases were remanded by the Tribunal vide its judgment dated 19.06.2001 and have not yet been finalized. Therefore, further extension may not be allowed.
6. We have heard contentions of both the sides and perused the C. M. Submitted by Collector of Customs, Lahore. Section 223 of the Customs Act, 1969 was not at all relevant to the situation. This was with reference to the Officers of Customs who were required to follow orders, instructions or directions of the Central Board of Revenue subject to the condition that such orders, instructions or orders could not be given so as to interfere with the discretion of the appropriate Officers of Customs in the exercise of their quasi-judicial functions. This Tribunal, created u/s 194 of Customs Act, 1969 was itself an appellate authority for the orders passed by Collector of Customs. Directions given in the Tribunal's judgment dated 20.01.2004 in Appeal No. 1648/LB/2003 for deciding the remand cases within 45 days from the date of issuance of the judgment was a judicial order of the Court in terms of subsection (1) of section 194-A read with sub-section (8) of section 194-C ibid and was required to be complied with by those to whom it applied since it was also the "final" order in terms of sub-section
(4) of section 194-B hence it was obligatory for all those to whom the said order applied to comply with the same. The original remand order of the Tribunal dated 19.06.2001 in Appeal No. 1263/LB/2000 remained non-complied for fairly a long time and thereafter Collector of Customs, Lahore passed a different order, on the refund applications dated 03.03.2003. Since the issuance of the judgment of the Tribunal dated 20.01.2004 (issued on 12.02.2004) only one date of hearing is reported to has been fixed on 19.03.2004 and that also could not materialize due to similar pre- occupation of the applicant. The limit of 45 days allowed vide judgment dated 20.01.2004 has already expired and the respondent has come forward with an application seeking another extension of sixty days but is not ready to give written commitment that the cases shall be finalized on merit within the so extended period of sixty days. The previous record of the respondent in compliance with the judgment of the Tribunal dated 19.06.2001 and now in compliance with the judgment dated 20.01.2004 and the applicant's reluctance to give written commitment for disposal of the remanded cases within the extended period provides sufficient grounds for us to believe that the applicant is not serious in complying with the orders of the Tribunal for disposal of the cases on their merits. Therefore in the interest of justice, we order the applicant (Collector of Customs, Lahore) to comply with the earlier judgment dated 20.01.2004 of this Tribunal and the period is extended for another forty-five days from the-date of issuance of this order subject to the condition that the Collector of Customs, Lahore (the applicant) shall fix the case for hearing within one week from the date of issuance of this order and shall hold continuous hearing on the working days in such a manner that his adjudication orders get issued within forty-five days from the date of issuance of this order.
7. The C. M. Stands disposed of accordingly.