1991 (3) TMI 266 - AT - Customs

Summary

Issues:
1. Calculation of duty rate based on the date of expiry of bond period or the date of clearance of goods.
2. Interpretation of Section 15(l)(b) of the Customs Act, 1962 regarding the determination of duty rate for goods cleared from a warehouse.
3. Application of previous judgments in similar cases to the current scenario.

Analysis:
The appeal in this case challenged the rejection of a refund claim by the Collector of Customs (Appeals) Bombay, which was confirmed by the Assistant Collector of Customs. The dispute revolved around the applicable duty rate for 'Homeopathic Medicines' imported and warehoused by the appellants. The appellants contended that the duty rate should be based on the date of expiry of the bond period, as per a Ministry of Finance clarification, whereas the authorities applied the duty rate prevailing on the date of clearance for home consumption. The key issue was whether the duty rate should be determined based on the expiry of the bond period or the actual clearance date.

The Collector held that since the interest was paid up to the clearance date, the warehousing period was considered to be extended, making the duty payable as per the rate on the clearance date. The Tribunal analyzed Section 15 of the Customs Act, which specifies that the duty rate for goods cleared from a warehouse under Section 68 is based on the date of actual removal from the warehouse. The Tribunal emphasized that the duty rate should be calculated as on the date of goods' actual removal, in line with the statutory provisions.

Referring to a previous case, the Tribunal highlighted that the duty rate determination is based on the date of goods' removal from the warehouse, even if it occurs after the warehousing period expires. This interpretation was applied to the current case, dismissing the appeal. The Tribunal differentiated another case where goods were removed under a different provision after the warehousing period, emphasizing that in the present scenario, the duty rate is linked to the actual removal date from the warehouse.

In conclusion, the Tribunal upheld the authorities' decision, ruling that the duty rate for goods cleared from a warehouse is determined based on the date of actual removal, as per Section 15(l)(b) of the Customs Act. The application of previous judgments reinforced this interpretation, leading to the dismissal of the appeal.