Instructions regarding need to follow Judicial discipline in adjudication proceedings.
July, 02nd 2014
F. No. 201/01/2014-CX.6
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
New Delhi, the 26th June, 2014
All Chief Commissioners of Central Excise,
All Chief Commissioners of Central Excise and Service Tax,
All Chief Commissioners of Customs.
Subject Instructions regarding need to follow Judicial discipline in
Kind attention is invited to the order of Hon'ble High Court of Guj arat at
Ahmedabad in case of M/s E. I. Dupont India Pvt Ltd (hereinafter referred to as M/s
Dupont) in Special Civil Application no 14917 to 14921 of 2013 dated 25-10-2013
[2013-TIOL-1172-HC-AHM-CX]. M/s Dupont had filed appeal before the Hon'ble High
Court against rejection of a refund claim on an issue which had earlier been decided by
the Hon'ble High Court against the revenue, though in a matter relating to a different
assessee. Thus for deciding the refund, a binding precedent judgment existed.
2) However the binding precedent was not followed which led to litigation before the
Hon'ble High Court to which Hon'ble High Court took a serious view. It may be noted
that on the subject of consequential refund, where the department has gone in appeal,
there already exists a circular no 695/11/2003 CX dated 24-02-2003. This circular of
the Board is binding on all field officers. Had this circular been followed in the case,
unnecessary litigation as well as adverse observation of the Hon'ble Hig h Court could
have been avoided. This circular is once again brought to the notice of field officers with
direction that it is followed scrupulously.
3) The judgment of Hon'ble High Court in M/s Dupont case (supra) under reference
may be perused by the field officers for complete understanding of the issues involved
and directions of the Hon'ble High Court on need to follow judicial discipline. Judgment
of the Hon'ble Supreme Court in case of Union of India vs. Kamlakshi Finance
Corporation Ltd. [1991 (55) E.L.T. 433 (S.C.) = 2002-TIOL-484-SC-CX-LB] may also be
perused as this is an authoritative pronouncement on the issue and has also been cited
by the Hon'ble High Court.
4) The contents of this instruction may be brought to the notice of all adjudicating
authorities under your jurisdiction with direction to follow the same scrupulously.
Under Secretary (CX)