Supreme Court Stays Bombay High Court Order, Says High Courts Not Custodians of Revenue Department.

The Supreme Court has stayed a Bombay High Court order that stayed a tribunal's direction for a refund of Rs 256.45 crore to a firm. The court observed that high courts are not the "custodian" of the revenue department and that the high court could not have stayed the order after holding the appeal filed by the Commissioner of CGST and Central Excise as not maintainable. The apex court issued a notice to the revenue department and posted the matter for further hearing on July 2.

The Supreme Court has intervened in a legal dispute involving a refund of Rs 256.45 crore to a firm, staying a Bombay High Court order that had halted the refund. The apex court's ruling underscores the principle that high courts are not the "custodian" of the revenue department [1].

The dispute originated when the Bombay High Court stayed a tribunal's direction for the refund of Rs 256.45 crore to a firm. The high court had previously held that the appeal filed by the Commissioner of CGST and Central Excise, Belapur Commissionerate, was not maintainable. However, the Supreme Court bench comprising Justices Ujjal Bhuyan and Manmohan observed that the high court could not have stayed the order after making such a determination [1].

The Supreme Court's order, passed on June 20, noted that the high court had disposed of a writ petition and an appeal filed by the revenue department, which were subsequently found to be not pressed. The apex court stayed the high court's June 12 order and issued a notice to the revenue department, seeking its response within six weeks [1].

The firm had challenged the high court order, arguing that the stay was unjustified. The Supreme Court agreed, stating that the high court had no jurisdiction to stay the tribunal's refund order. The apex court also noted that the high court had recorded that both the petition and the appeal were disposed of as not pressed, and that the firm had liberty to appeal before the Supreme Court [1].

The Supreme Court's intervention highlights the importance of adhering to the principles of revenue jurisdiction and the need for high courts to respect the decisions of revenue tribunals. The case underscores the role of the Supreme Court in ensuring that revenue disputes are resolved in accordance with the law [1].

References:
[1] https://www.business-standard.com/amp/india-news/hcs-not-custodian-of-revenue-department-says-sc-stays-bombay-hc-order-125062100492_1.html