2016 (9) TMI 470 - AT - Customs

Chargeability of interest warehoused goods private bonded warehouse interest free period of 180 days - the notification No. 23/2001-Cus(NT) dated 22/5/2001,issued, effective from 1/6/2001, the interest was chargeable after expiry of bond period of 30 days interest chargeable on over and above 30 days or 180 days? Held that - the goods were warehoused prior to issue of Notification No. 23/2001-Cus(NT) during that time the statue has mandated interest free bonding period of 180 days. Under that provision the appellant has executed the bond and warehoused the goods. Though the Notification No. 23/2001-Cus reduced period of 180 days to 30 days w.e.f. 1/6/2001 but goods which already warehoused prior to that date, will not be governed by amended notification, particularly for the reason that the period of 180 days provided under statue was not curtailed by this statue. Notification will have prospective effect - appellant are entitled for the interest free period of 180 days in respect of goods warehoused prior to 1/6/2001, cleared for home consumption thereafter appeal allowed decided in favor of appellant.

Summary

Issues:
1. Interpretation of Notification No. 23/2001-Cus(NT) regarding interest free period for warehoused goods.
2. Applicability of interest free period to goods warehoused prior to the notification.
3. Retrospective vs. prospective effect of the notification on interest charges.

Issue 1:
The appeal concerns the interpretation of Notification No. 23/2001-Cus(NT) regarding the interest free period for warehoused goods. The appellant argues that the interest free period of 180 days should apply, as the goods were warehoused before the notification was issued. The Revenue contends that the interest free period is only 30 days post-notification. The appellant relies on various decisions to support their argument.

Issue 2:
The Tribunal examined whether the interest free period should be determined based on the date of warehousing or the date of the notification. It was established that goods warehoused before the notification date should adhere to the previous provision of 180 days interest free period. The Tribunal referenced previous judgments to support this interpretation, emphasizing that the reduced period of 30 days applies only to goods warehoused after the notification date.

Issue 3:
The Tribunal deliberated on the retrospective or prospective effect of Notification No. 23/2001-Cus(NT). It was concluded that the notification has a prospective effect, applying only to goods warehoused after its issuance. The Tribunal distinguished a cited case due to it being an ex parte decision and not considering relevant precedents. Consequently, the impugned order was set aside, allowing the appeal and granting the appellant the 180 days interest free period for goods warehoused before the notification date. The judgment reaffirmed the principle that fiscal legislation imposing liability is presumed to be prospective unless expressly stated otherwise.