2007 (1) TMI 80 - AT - Customs

Warehoused goods The goods imported were warehoused thereafter the appellant after the expiry of warehoused period not come forward to take possession of the imported goods and according demand were made along with interest Held that demand and interest were sustainable

Summary

Issues:
1. Demand of duty and interest on warehoused goods.
2. Interpretation of Sections 61, 72, and 28 of the Customs Act.
3. Application of case laws pre and post-amendment of Section 61.

Analysis:
The appeal before the Appellate Tribunal concerned the demand of duty and interest on warehoused goods. The Revenue appealed against the Commissioner (Appeals) decision to set aside the demand. The case revolved around the importer's failure to request extension or removal of goods after the warehousing period expired. The Revenue argued that under Section 72 of the Customs Act, the proper officer can demand duty, interest, and other charges for goods not removed after the warehousing period. Additionally, Section 42 allows for detention and sale of goods if the owner fails to pay. The Revenue contended that the amended Section 61, post-Finance Act 1999, imposed liability on importers for interest on goods remaining in the warehouse beyond the prescribed period.

The Tribunal found that the importer did not seek release of the warehoused goods, which led to the demand for duty and interest by the Revenue. The Tribunal emphasized the clarity of Sections 72 and 61, which provide for duty, interest, and charges on goods not removed after the warehousing period. The Tribunal noted that the case laws relied upon by the Commissioner (Appeals) were applicable to a time when Section 61 did not have the current provisions. Importantly, the Tribunal highlighted that Section 28, regarding duty not levied or erroneously refunded, was not relevant in this case. The Tribunal concluded that no time limit was specified for the release of goods under Sections 61 and 72, leading to setting aside the impugned order and allowing the appeal.

In summary, the Tribunal's decision centered on the proper application of Sections 61, 72, and 28 of the Customs Act concerning duty and interest on warehoused goods. The Tribunal clarified the liability of importers for duty and interest when goods are not removed after the warehousing period, emphasizing the self-contained nature of the relevant provisions. The Tribunal differentiated the applicability of case laws based on the pre and post-amendment scenarios of Section 61, ultimately ruling in favor of the Revenue's appeal.