Interest on re-export of warehoused goods – Board accepts Supreme Court judgement after nine years.
Way back in 1996, the Supreme Court in the PRATIBHA PROCESSORS case held that interest is an accessory of the Principal and if the Principal was not payable, so was interest. But Board had in letter F.No.475/82/92-LC, dated 27.12.1993 clarified that interest is payable for clearances from the warehouses even if the duty was not payable. Now the Board has a doubt whether its circular has to be followed or the Supreme Court order has to be followed. What is to be done in such cases? Even the Supreme Court is not sure as our case in today’s breaking news would show.
Any way thankfully now the Government has decided to adopt the ratio of the Supreme Court judgement. Thank you Board! - for the respect shown to the highest court – though after nine years. It’s never too late to do good things. And to respect the Supreme Court. Incidentally is the Board Circular retrospective? And does any body have a copy of the Board letter?. My search was futile. Why can’t the Board make available a copy of the letter issued twelve years ago and which was not published anywhere?
CIRCULAR NO , Dated: September 28, 2005