METAL DISTRIBUTORS LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) The dispute in this petition filed under Article 226 of the Constitution of India lies in a very narrow compass andthe prayer made by the ppetitioners is for an amount of Rs. 9,65,297.22 towards the interest for wrongful retention of an amount of Rs. 77,52,145.72 by the respondents in the following circumstances :

(2.) During the period commencing from October 15, 1979 to May 7,1980, pursuant to the contracts entered into between foreign suppliers and the petitioners, the petitioners imported 764 Metric Tones of Alloy Steel Scrap. Upon importation of the goods, the petitioners filed in all 26 Bills of Entries with the Customs authorities for clearance of the goodss for home consumption. The goods were described on the Bills of Entries as "Alloy Steel Scrap" assessable to customs duty under Tariff Entry 73.03/05. The ppetitioners are liable to pay basic customs duty at the rate of 30% ad valorem, auxiliary duty at the rate of 5% and countervailing duty at the rate of 225/- per Metric Ton. The Costoms Department purported to classify the goods under Tariff Heading 73.15(1) and 73.15(2) and in some cases under Tariff Item 73.17/19(1) instead of 73.03/05. The petitioners were, therefore, required to pay total duty of Rs. 1,29,23,037.77. The Customs authorities also imposed a fine of Rs. 13,25,500.00 upon the petitioners.

(3.) Between November 1981 and Junuary 1982, the petitioners filed 26 refund application before the respondents claiming refund of an amount of Rs. 1,03,73,203.17. The petitioners claimed that this amount was recovered as excess duty by the respondents without any authority of law and the petitioners are entitled for refund of the said amount along with the interest at the rate of 18% from the date of recovery till date of repayment. The petitioners also demanded the refund of fine of Rs. 13,25,500.00 . The respondents granted 17 applications in respect of 17 Bills of Entries between the period January 5, 1983 and February 17, 1983. The total amount refunded was Rs. 77,52,145.72. The respondents did not intimate to the petitioners about their claim for interest on this refund amount. The respondents also did not pass any order in respect ofthe remaining refind application.