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1997 DIGILAW 624 (SC)

Jindal Paper And Plastics v. Union Of India

1997-03-25

K.VENKATASWAMI, S.P.BHARUCHA

body1997
ORDER 1. Special leave granted. 2. The principal issue is covered against the appellants bythe judgment of this Court in Kasinka Trading v. Union of India ( (1995) 1 SCC 274 : JT (1994) 7 SC 362). This judgment was delivered on 18-10-1994. The same issue was thereafter referred to a larger Bench and the larger Bench came to the conclusion, on 20-12-1996 (Shrijee Sales Corpn. v. Union of India, (1997) 3 SCC 398 ), that thejudgment in Kasinka Trading ( (1995) 1 SCC 274 : JT (1994) 7 SC 362] was good law. 3. It is argued on behalf of the appellants that, nonetheless, the award of interest at the rate of 17.5% per annum from the date the duty became payable till it was paid or recovered was uncalled for in view of the fact that the point of law had remained undecided at least until 18-10-1994. Reference was made to the judgment of this Court in Kashyap Zip Industries v. Union of India (1993 Supp (3) SCC 493 : (1993) 64 ELT 161 ) where, in somewhat similar circumstances, the rate of interest was reduced to 12% per annum. 4. We are of the view that there was uncertainty about the law until the decision in the case of Kasinka Trading ( (1995) 1 SCC 274 : JT (1994) 7 SC 362) was rendered on 18-10-1994, and that, therefore, interest from the date it became payable until 18-10-1994, should be payable at the rate of 12% per annum. Interest for the further period should be at the rate of 17.5% per annum, as ordered by the High Court. Calculations shall be made accordingly and the balance and interest as aforesaid due by the appellants shall be paid to the respondents within 8 weeks. 5. The appeals are allowed to the aforesaid extent. There shall be no order as to costs.