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TMI Blog1990 (1) TMI 206X X X X Extracts X X X X X X X X Extracts X X X X ..... they did not remove all the quantities of the zinc concentrates as covered by the ex-bond Bill of Entry but removed the same in smaller lots as required by them from time to time. The appellants were called upon to pay interest in terms of Section 61 of the Customs Act as the goods had been kept over in warehouse even though duty in respect of the same had been paid, beyond the period for which the warehousing was permitted. The interest has been demanded by the authorities upto the date of the physical removal of the goods from the warehouse. While the appellants have contested before the lower appellate authority that the interest should be reckoned upto the date of payment of duty by them in respect of the goods which were lying beyond the period of warehousing in the warehouse and not upto the date of physical clearance of the goods. The learned Collector (Appeals) has held that the interest should be paid by the appellants for the period commencing from the date the proper officer of Customs made an order under Section 60 of the Customs Act till the date of physical removal of the goods from the warehouse. 2. The learned Advocate for the appellants pleaded before us on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er annum as is for the time being fixed by the Board, shall be payable on the amount of duty on the warehoused goods for the period from the expiry of the period of one year or, as the case may be, three months, till the date of the clearance of the goods from the warehouse: Provided that the Board may, if it considers it necessary so to do in the public interest, waive, by special order and under circumstances of an exceptional nature to be specified in such order, to whole or part of any interest payable under this sub-section in respect of any warehoused goods." The learned Advocate pointed out that in terms of the above provisions of the Act the interest is payable on the amount of duty on the warehoused goods for the period from the expiry of the period of one year or as the case may be three months till the date of clearance of the goods from the warehouse. He pleaded that the lower authorities are in errorholding that the term clearance of the goods means physical clearance of the goods from the warehouse. He pointed out that the term clearance of the goods has been used in different sections of the Act and it would be relevant to advert to these sections for underst ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, the goods in that view of the matter could be deemed to have been cleared. Section 68 for convenience of reference is reproduced below: - 68. Clearance of warehoused goods for home consumption. - The importer of any warehoused goods may clear them for home-consumption, if- (a) a bill of entry for home consumption in respect of such goods has been presented in the prescribed form; (b) the import duty leviable on such goods and all penalties, rent, interest and other charges payable in respect of such goods have been paid; and (c) an order for clearance of such goods for home consumption has been made by the proper officer." The learned Advocate pleaded that the duty payable on the goods had been paid and there was no outstanding duty to be paid in respect of which any further interest can be charged. 3. The learned SDR for the Department pleaded that the appellants should be strictly bound by the provisions of Section 61 and that is the only section which comes into play so far as the clearance of warehoused goods is concerned and the charges which are required to be paid in respect of the same. He pleaded that the interest payable is related to the warehoused goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eal. On a query from the Bench, he also clarified that the goods as it is were allowed to be warehoused on import for a period of three months and the appellants had not challenged the period for which the warehousing was permitted. In view of this so far as the second plea is concerned, we find no merits in this also. 5. We observe that the point that falls for decision is as to whether once the duty on the warehoused goods have been paid and out of charge order for home consumption by the proper officer had been passed, the same could or could not be considered as having been cleared from the warehouse. We observe that the expression clearance of the goods from the warehouse cannot be read in isolation and should be read in the context in which these have been used under Section 61(2). It is seen that Section 61(2) contemplates the collection of the interest on the amount of duty on the warehoused goods for the period from the expiry of the period of three months till the date of clearance of the goods from the warehouse. It is seen that the interest is required to be collected in respect of the duty on the warehoused goods. The term duty under Section 2 of the Customs Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een passed. Section 23(1) provides for remission of duty upto the point for clearance for home consumption and under Section 23(2) a person is entitled to relinquish his title to the goods till the time when an order for clearance for home consumption by proper officer has been passed. A reading of all the sections together shows that the authorities treat the goods as still uncleared till the out of charge order has been passed by the proper officer and no notice of the loss etc. is taken till such an order has been passed. In this context it is also relevant to refer to Section 45(1) of the Act, which for convenience of reference is reproduced below: 45. Restrictions on custody and removal of imported goods.- (1) Save as otherwise provided in any law for the time being in force, all imported goods unloaded in a customs area shall remain in the custody of such person as may be approved by the Collector of Customs until they are cleared for home consumption or are warehoused or are transhipped in accordance with the provisions of Chapter VIII. It is observed that in this section it is enjoined that all the imported goods unloaded in Customs area shall remain in the custody of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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