PRATIBHA SYNTEXT LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) THIS petition is directed against the final order bearing no. 21/2000 dated 3/10-5-2002 (Exhibit E) passed by the Settlement Commission, Customs and Central Excise, Additional Bench, Munibai ('the Commission' for short) (respondent No. 2 herein) to the extent it awards interest at the rate of 10% p. a. on the customs duty found payable, from the date of import till the date of deposit and adjustment thereof. THE FACTS

(2.) THE facts leading to the petition are that during the years 1994-95 and 1995-96, the petitioners applied for and were granted 15 advance licences for export of dyed fabrics/sarees made from 100% polyster filement yarn ('pfy' for short); whereby petitioners were permitted to import inter alia, 'pfy' and other inputs duty free under the said advance licences as per notification No. 204/92-Cus. dated 19-5-1992.

(3.) ON 5-7-1997, a show cause notice came to be issued by the Customs authorities to the petitioners. It was alleged in the show cause notice that the investigation carried out in the case of the petitioners, has revealed that the petitioners resorted to manipulate the weight of the fabric as well PFY contained in the shipping bills and the petitioners failed to produce any documentary evidence of register to show proper utilisation of the exempt material cleared under Notification No. 204/92. By the said show cause notice the petitioners were called upon to show cause why an amount of Rs. 1,11,25,570/- should not be demanded and recovered from them under proviso to section 28 (1) of the Customs Act ('the said Act' for short) coupled with the declaration given at the time of clearance in terms of Notification No. 204/92 and why penal action should not be taken against them under the provisions of the said Act.