9911796707
TMI Blog1995 (3) TMI 212X X X X Extracts X X X X X X X X Extracts X X X X ..... f duty after overstaying in the warehouse. The appellants had cited the ratio of the ruling of the Kerala High Court in the case of Tungabhadra Fibres Ltd. v. Union of India reported in 1991 (52) E.L.T. 357 (Ker.) = 1990 (2) KLT 492. The learned Departmental Representative pressed into service the ruling of the Divisional Bench of Madras High Court in the case of Collector of Customs, Madras v. Tungabhadra Fibres Ltd. reported in 1994 (71) E.L.T. 655, and the Tribunal chose to follow the ruling of the Divisional Bench of the Madras High Court on the observations of the High Court as under : 10. Regarding the levy of interest, forming the subject matter of W.A. No. 917 of 1992, it is seen that the company has been successful in periodical ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Advocate for the appellants reiterated the pleas made in the Reference Application. We observe that the learned Departmental Representative prayed there is no question of law arises inasmuch as the Tribunal has followed the Divisional Bench decision of the Madras High Court. We observe that after the case had been decided, a similar matter in the case of Coimbatore Pioneer Mills Ltd. v. Collector of Customs, Cochin, 1991 (56) E.L.T. 858 (Tri.) came up before the Tribunal and it was brought to our notice that in a similar matter the Supreme Court while granting leave in dealing with the issue relating to payment of interest under similar circumstances passed the following order : Leave granted. The appellants are directed to pay 25% o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1)(b) of the Customs Act, 1962, and when particularly the liability of the importer to pay duties occurs at the time of the actual clearance of the goods from the warehouse in view of the provisions of Section 15(1)(b) of the said Act. (d) Whether the notional accrual of liability to duties entitles the respondents to claim interest on duties alleged to be withheld when such accrued duties are not payable at the time of the clearance of the goods and therefore can the chargeability to duties be equated to payment of duties on actual clearance of the goods under the Customs Act, 1962? (e) Whether the Public Notice issued by the Assistant Collector of Customs has the effect of law to charge interest on duties which are admittedly not paya ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt reported in 1992 (61) E.L.T. 37 in the case of M/s. Bangalore Wire Rod Mills v. Union of India. 3. After hearing both the sides, we took the view that there is an apparent conflict in the view taken by various High Courts in regard to the scope and interpretation of Section 59 of the Customs Act, 1962 with reference to the liability of the interest charges on various goods when the goods did not suffer duty at the time of clearance for the reason of an exemption notification. In view of that we are of the view that in the interest of justice, the matter will have to be resolved by the Hon ble Supreme Court. In that view, it was found expedient that the Reference should be made direct to the Supreme Court through the Hon ble President o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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