JUDGMENT

B.P. Jeevan Reddy, J.- Leave granted in Special Leave Petitions.

2. The respondent - M/s. Bangalore Wire Rod Mill imported a high reversible mill in the year 1982. On November 11, 1982, he warehoused the said goods without paying duty as contemplated by Sections 58 and 59 of the Customs Act, 1962 [the Act]. On March 7, 1985, the authorities issued a notice to the respondent to clear the goods from the warehouse within fifteen days of the said notice after paying duty due thereon. The respondent, however, did not clear the goods until September 9, 1988 on which day he paid a duty of Rs. 1.40 crores and interest of Rs. 81.49 lakhs as demanded by the authorities. Having cleared the goods, the respondent filed a writ petition in the Karnataka High Court contending that levy of interest from November 11, 1983 upto the date of clearance of the goods from the warehouse and that too treating the rate of duty as ninety percent is contrary to law and unsustainable. It asked for refund of excess amount of interest collected from it. Its case was that the initial warehousing period was for three years and, therefore, the interest, if at all, should be charged only for the period after