Devang Textiles Pvt. Ltd. And Anr. vs Union Of India And Ors.
1992 Latest Caselaw 252 Del

JUDGMENT

Gokal Chand Mital, C.J.

(1) On a consideration of the matter, we are of the view that the point in dispute, whether auxiliary duty and countervailing duty is also payable, is concluded by the decision of the Supreme Court in M/s.Kathayee Cotton Mills Ltd. v. Union of India, Slp (C) No. 3734 of 1984 in favor of the Union of India and against the petitioner, by which the Supreme Court upheld the reasoning given by the Kerala High Court in Raja Lakshmi Mills Ltd. v. Union of India 1984(16) E.L.T. 47.

(2) The Bombay High Court in Pawan Kumar Goyal v. Union of India 1990 (45) E.L.T.227 following the decision in Raja Lakshmi Mills Ltd. (supra) came to the same conclusion.

(3) Accordingly, following the aforesaid decisions, we are of the view that the writ petitions are without merits and are dismissed.

(4) There was an interim order by this Court while admitting the writ petitions, under which bond and bank guarantee were furnished. The respondents will be entitled to encash the bank guarantee and enforce the bond and make the recovery forthwith.

(5) Since the petitioners have benefit of keeping back the payment of duty under the orders of this Court, we order that the respondents will be entitled to recover the amount with interest at the rate of 17.5 per cent per annum from the petitioners from the date of the passing of the stay order till recovery.