SANJAY DHANUKA Vs. COLLECTOR OF CUSTOMS

JUDGEMENT

(1.) This appeal is preferred against the judgment and/or order dated 11th May, 1993 passed by a learned Judge of this Court in Matter No. 1148 of 1993 moved by the writ petitioner Sanjay Dhanuka. The subject matter of controversy before the Writ Court was the liability of the petitioner to pay interest on goods warehoused by the petitioner under Section 59 of the Customs Act. The learned Judge in a detailed judgment however held that the writ petitioner was not entitled to any relief excepting that a direction on the customs authorities to release the balance LDPE Granules to the writ petitioner/appellant subject to the appellant making payment of interest at the rates of duties as applicable from time to time after the expiry of the statutory period under Section 61 under the unamended provisions of Section 61(2) of the Customs Acts.

(2.) This question however is no longer res integra in view of the recent decision of the Supreme Court in the case of Pratibha Processors v. Union of India, reported in 1996 (17) RLT 333 (SC) and in the case of Commissioner of Customs v. Jayathi Krishna & Co. In the aforesaid two cases it was held by the Supreme Court that the importers-assessees are not liable to pay interest in respect of warehoused goods, though at the time of clearance the goods were exempted from payment of duty.

(3.) That being the position in law now, we have no other alternative but to set aside the judgment of the trial Court and hold that the appellants are not liable to pay any interest in respect of warehoused goods.