- (1.) It is stated by Mr. F. s. Nariman, learned senior counsel for the appellant that towards the arrears of duty in a sum of R. 6.5 crores, bank guarantees are furnished to the full extent by" the appellant which are still continuing and valid. Mr. A. Subba Rao, learned counsel for the Revenue says that besides the above duty of arrears, interest has also accrued which appears to be in the region of Rs. 3.8 Crores.
(2.) In view of the statement that the appellant company was until recently under BIFR and has just now been released and still is in the process of recovery the following order is made : The respondent shall encash the bank guarantees to the extent of half the duty due, i. e. , upto Rs. 3.25 crores, on or after 1/01/1995. The remaining bank guarantees shall continue to be kept alive pending the appeal.
(3.) It is obvious that in the event of the appeal being allowed, the respondents shall refund the amount with interest at the rate of 12 per cent.;