9911796707
TMI Blog1992 (6) TMI 102X X X X Extracts X X X X X X X X Extracts X X X X ..... cleared only 10 pcs after payment of duty. 23 cases were re-exported on 27-5-1987 after they being warehoused for the period from 5-9-1985 to 27-5-1987. A show cause notice was issued to the appellants stating as to why the interest should not be paid, by the appellants on the duty payable on these 23 cases. The learned Assistant Collector held that what is important is the clearance of the goods from the warehouse. He held that had it been a clearance for the home-consumption, the appellants would have definitely paid the interest for the extended period. He, therefore, held that the clearance made for export does not make any change in the basic concept of clearance. It was also stated by him that after storing the goods beyond the validi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l period of warehousing. The appellants owed the interest on duty to the Government of India for the facility enjoyed being permitted to keep the goods in question in the warehouse beyond the normal period of warehousing. That being the case, he justified the orders. 5. We have considered the submissions of both sides. In this case, the learned Advocate, Shri Das relied on the decision of the Kerala High Court in the case of Thungabhadra Fibres Ltd. v. Union of India reported in 1991 (52) C.L.T. 357 (Ker.). In that case, the Hon ble High Court at paras 6 to 8 held as follows:- 6. In Parkash Cotton Mills (P) Ltd. v. B. Sen [AIR 1979 SC 675] the Supreme Court, after analysing Section 15 of the Act has held that the rate of duty shall be t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act and the Rule and regulations in respect of such goods and to pay on or before a date specified-in a notice of demand all duties, rent and charges claimable on account of such goods under the Act together with interest on the same from the date so specified at the rate of six per cent per annum or such other rate as in for the time being fixed by the Board. When a bond envisaged in Section 59 is executed, the customs officer has power to permit deposit of goods in the warehouse without payment of duty. 8. A reading of the relevant provisions of the Act would show that the liability to pay interest cannot be delinked or divorced from the liability to pay duty. Both are conjunctive and must go together. The words together with interest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the fact that the goods being sub-standard are allowed to be re-exported. Therefore, on analogy of the principles laid down by the above-said decision, the appellants have no liability to pay interest. The reasoning is that the liability to pay interest is linked with the liability to pay duty. It cannot be delinked or divorced from the liability to pay duty. The appellants liability to pay duty is there, when they clear the goods from the warehouse for home-consumption. But when they clear the goods from the warehouse for re-exportation, there is no question of payment of duty. Since there was no payment of duty in view of the re-export, the natural as well as legal corollary is that the appellants cannot be burdened to pay interest on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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