Supreme Court of India

Pratibha Processors and Ors., Etc. Etc. v. Union of India and Ors.

Neutral citation
Reported as [1996] SUPP. 7 S.C.R. 596
Bench Paripoornan J.
Decided 11 October 1996

INSC stands for INDIAN SUPREME COURT. A neutral citation scheme assigned by the Court itself, so a judgment can be cited without depending on a commercial law reporter. INSC is the neutral citation scheme assigned by the Supreme Court, so a judgment can be cited without depending on a commercial law reporter.

4 Supreme Court benches have cited this judgment.

What the Court ordered

We are of the opinion that the High Court erred in holding that the importers - assessees are liable to pay interest in the instant cases in respect of warehoused goods, though at the time of clearance the goods p were exempt from payment of duty.

Judgment, page 15

From the headnote

Customs Act 1962, s. 61 (2)-Payment of interest where no duty payable at the time of clearance of warehoused goods-Held, where goods are wholly exempt from payment of duty, there is no occasion to levy any interest; interest is necessarily linked to duty payable and has no separate existence. The petitioners imported Polyester Filament Yarn of Taiwan origin. The goods were allowed to be warehoused under six bonds dated December 4, 1990 expriring on March 3, 1991. Thereafter the petitioners obtained Advance Licence under the Duty Exemption Entitlement Certificate (DEEC) Scheme. On or about May

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