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1991 (3) TMI 266

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..... e of clearance of goods from the warehouse and not the rate prevalent on the date of expiry of bond period as contended by them. 2. The appellants had imported a consignment of Homeopathic Medicines on 22-1-1987 and warehoused the same under Section 59 of Customs Act, 1962 on 9-2-1987. The Bond period of three months under Section 61(1) of the Customs Act, 1962 expired on 9-5-1987 when the rate of auxiliary duty prevalent was 40%. However, the goods were cleared for home consumption on an ex-bond bill of entry on 1-10-1987. The auxiliary duty prevant at that time was 45% which was charged and paid. It was contended by the appellants before the lower authorities that as per Ministry of Finance clarification of 17-3-1987, the duty applica .....

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..... tion 15 of the Customs Act, 1962 reads as under - Date for determination of rate of duty and tariff valuation of imported goods - (1) The rate of duty and tariff valuation, if any, applicable to any imported goods, shall be the rate and valuation in force - (a) in the case of goods entered for home consumption under Section 46, on the date on which a bill of entry in respect of such goods is presented under that section; (b) in the case of goods cleared from a warehouse under Section 68, on the date on which the goods are actually removed from the warehouse; (c) in the case of any other goods on the date of payment of duty: Provided that if a bill of entry has been presented before the date of entry inwards of the vessel by whi .....

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..... to any imported goods, shall be the rate and valuation in force, - (b) in the case of goods cleared from a warehouse under Section 68, on the date on which the goods are actually removed from the warehouse". 6. In view of the above clear provisions of law, the duty chargeable will be as on the date on which the goods were actually removed from the warehouse. A harmonious reading of Section 15(l)(b) and Section 68 and Section 72 will also lead to the same inference. 7. In (he case of Kesoram Rayon v. Collector of Customs (1989 (44) E.L.T. 37 (Tribunal)], the Tribunal has taken the view as follows - In the present case, the goods were not cleared from the warehouse under Section 68 of the Customs Act. The goods were removed on the .....

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..... ection 46 ibid. In the present case, the Customs Department has charged duty of the said rate. According to the provision of Section 72 the interest is also recoverable from the appellants for storage of the goods after expiry of the bonding period. We, therefore, do not find any illegality in the order passed by the Asstt. Collector". 8. In the above ruling, the goods were removed as per the order of the Assistant Collector under Section 72 of the Customs Act after the expiry of the warehouse period when the proper officer sought for recovery of duty as per Section 72(l)(b) of the Act. In this case, the proper officer did not invoke Section 72(l)(b) of the Act. Therefore, it has to be presumed that the goods continued to be warehoused go .....

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