2007 (5) TMI 244 - SCH - Customs

Interest on refund claim - Held that - respondents to furnish security in the form of a bank guarantee to the satisfaction of the Registrar General of the High Court in the sum of Rs. 3 crores. The bank guarantee shall be of a nationalised bank which shall be furnished by the respondents within two weeks. The bank guarantee shall be kept alive for such period as the Registrar General deems fit. We also request the High Court to expeditiously hear and dispose of the Writ Petition preferably within six months from today. We set aside the direction of the High Court for recovery of an amount of Rs. 65 lakhs from the officers of the Department - Decided in favour of Revenue.

Summary

The Supreme Court allowed the appeal, directing M/s. Honda Siel Car India Ltd. to provide a bank guarantee of Rs. 3 crores. The High Court's decision to allow the company to take back Rs. 3 crores and to pay interest of Rs. 65 lakhs was set aside. The High Court was requested to expedite the Writ Petition within six months. Disciplinary proceedings against officers were suspended pending the Writ Petition's final disposal.