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Issues:
- Interpretation of liability to pay interest under Section 61(2) of the Customs Act, 1962 for warehoused goods cleared after overstaying in the warehouse without payment of customs duty. - Conflict in views among different High Courts regarding the interpretation of Sections 59(1)(b), 61(2), and 68(b) of the Customs Act, 1962 in relation to interest charges on goods exempted from duty at the time of clearance. - Whether interest can be delinked from duty payment when no duties are payable by importers at the time of clearance. - Validity and effect of a Public Notice issued by the Assistant Collector of Customs to claim interest on goods cleared under the Duty Exemption Scheme. Analysis: The judgment concerns the interpretation of liability to pay interest under Section 61(2) of the Customs Act, 1962 for warehoused goods cleared after overstaying in the warehouse without payment of customs duty. The Tribunal held that interest could be levied under Section 59 as compensation for delayed clearance, citing the ruling of the Divisional Bench of the Madras High Court. The issue arose due to conflicting views among different High Courts on the interpretation of Sections 59(1)(b), 61(2), and 68(b) regarding interest charges on goods exempted from duty at the time of clearance. The Tribunal decided to refer the matter to the Hon'ble Supreme Court under provision 130A of the Customs Act, 1962, recognizing the need for resolution due to the conflicting views. The Tribunal acknowledged the conflicting views of various High Courts on the scope and interpretation of Section 59 in relation to interest charges when goods are exempt from duty upon clearance. The Tribunal found it necessary to seek clarification from the Supreme Court to resolve the issue. The Tribunal referred the question of law to the Supreme Court, questioning the liability to pay interest under Section 61(2) for goods cleared after overstaying in the warehouse without payment of customs duty. The Tribunal directed the applicants to pay 25% of the interest amount calculated by the Department, provide a Bank guarantee for 50% of the interest amount, and a property surety for the remaining 25% pending the Supreme Court's decision. The judgment highlighted the importance of resolving the conflicting interpretations of the Customs Act provisions by different High Courts. It emphasized the need for a consistent approach to determine the liability for interest charges on goods cleared under the Duty Exemption Scheme. The Tribunal's decision to refer the matter to the Supreme Court reflects the complexity of the legal issue and the necessity for a definitive ruling to provide clarity on the interpretation of the relevant statutory provisions.
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