Treatment of warehousing interest in the apportionment of Sale proceeds under Section 150 of the Customs Act, 1962 - Customs - F. No. 473/94/89-Cus. VIII

Treatment of warehousing interest in the apportionment of Sale proceeds under Section 150 of the Customs Act, 1962 F. No. 473/94/89-Cus. VIII Dated 22-5-1990 Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs New Delhi Subject : Treatment of warehousing interest in the apportionment of Sale proceeds under Section 150 of the Customs Act, 1962. Reference to D.O. letter F.No. 5/6-Gen. 1246/89 bonds dated 8-11-1989 (copy enclosed) from the Collector of Customs, Bombay on the above mentioned subject. 2. The matter has been considered by the Board. It is observed that interest on customs duty on warehoused goods levied under Section 61(2) of the Customs Act, is distinct from the customs duty. In fairness, it cannot take precedence over the rent and other claims of the warehouse keeper who is providing a definite service, by keeping the custody of the goods and in the process incurring considerable costs. It is, accordingly, decided that there is no justification to amend the Customs Act for giving interest charges overriding precedence on par with customs duty under Section 150 of the Customs Act, 1962. 3. The above decision may be kept in view while deciding on the apportionment of various charges under Section 150 of the Customs Act on the disposal of warehoused goods.