PREMIER TEXTILE PROCESSORS Vs. UNION OF INDIA

JUDGEMENT

(1.) Leave granted.

(2.) We shall deal with the facts of the appeal arising out of S. L. P. (C) No. 17490/97. The appellant is engaged in the process of cotton and man-made fabrics on job work. The questions whether the processing activities constituted manufacturing and regarding the assessable value of the processed fabric were the subject matter of a writ petition filed by the appellants in the High Court at Bombay. The appeal having been dismissed, the appellant approached this Court by way of a special leave petition. As an interim order, pending the disposal of the appeal by special leave, this Court required the appellant to give a bank guarantee for 50% of the amount in dispute and to deposit the balance 50% in the High Court. The amount deposited in the High Court pursuant to this interim order was invested in fixed deposit. On 4th November, 1988, the appeal was dismissed by this Court. The question then was who was to get the amount of the interest that had accrued on the fixed deposits because there was no order in this behalf.

(3.) The appellant applied to the Prothonotary and Senior Master of the High Court for release of the interest amount to it and, on 28th July, 1992, the Prothonotary so ordered. The order of the Prothonotary was assailed by the respondents by taking out Notice of Motion 400/92 in the High Court. On 25th June, 1993, Notice of Motion 400/92 was dismissed. The order in this behalf reads thus: