UNION OF INDIA Vs. METAL DISTRIBUTORS LTD

JUDGEMENT

(1.) THIS is an appeal by the Union of India, the Collector of Customs and Others against a judgment of the learned Single Judge dated 14th September, 1984 under which he has directed the appellants to pay to the respondents a sum of Rs. 9,65,297. 22 being interest at the rate of 12% per annum on the sum of Rs. 77,52,145. 72 which was an amount withhold by the appellants without the authority of law. The writ petition was filed only for recovery of interest on the said amount of Rs. 77,52,145. 72.

(2.) THE respondents during the period commencing from 15th October, 1979 to 7th May, 1980 imported 764 MTs. of Alloy Steel Scrap pursuant to various contracts which were entered into between the respondents and the foreign suppliers. In respect of Alloy Steel Scrap so imported the appellants filed 26 bills of entry for clearance of these goods for home consumption. According to the appellants the goods imported by them were covered by Tariff Entry No. 73. 03/05 and they were liable to pay basic Customs Duty at the rate of 30% + 5% auxiliary duty and Rs. 225/- per M. T. as countervailing duty. The appellants, however, purported to classify the goods under Tariff Entry No. 73. 15 and/or 73. 17/19 and called upon the respondents to pay basic customs duty at the rate of 220% + 5% auxiliary duty plus a countervailing duty at the rate of Rs. 325/- per M. T. As a result the respondents were required to pay a total amount of Rs. 1,29,23,037. 77. The appellants also imposed a fine of Rs. 13,20,500/ -.

(3.) BETWEEN November, 1981 and January, 1982 the respondents filed 26 refund applications claiming a total refund of Rs. 1,03,73,203. 17. The respondents contended that this was excess duty recovered without any authority of law. They also claimed a refund of this amount with interest at the rate of 18% per annum from the date of payment till repayment. They also claimed a refund of the fine of Rs. 13,20,500/ -.