9911796707
TMI Blog1996 (7) TMI 252X X X X Extracts X X X X X X X X Extracts X X X X ..... he Bills of Entry were assessed and returned to the importers. The importers paid 50% of the duty so assessed and warehoused the goods. On the date of removal of the goods along with the remainder of the duty so assessed, they were asked to pay interest for the period from the expiry of 7 days from the date on which the Bills of Entry were returned to them, till the date of physical clearance from the wareshouse. The appellants complied with this direction but subsequently filed a refund claim for the interest so paid on the ground that the total period for which the goods were warehoused had not exceeded the period of 30 days which was the permissible period prescribed under Section 61(1)(b). In the meanwhile the Department on realising th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... permissible period for warehousing was 30 days. And, therefore, the interest should have been attracted only after the expiry of that period. He claimed that this argument had in fact been accepted by the Collector in allowing this appeal in the first instance whereby the cases were remanded to the lower authority with the direction that refund of amount of interest paid for the period in excess of the 30 days of warehousing be done if otherwise admissible. This direction was not followed by the Assistant Collector. The Collector in his order dated 21-9-1994 accepted the interpretation made of his earlier order by the Assistant Collector in de novo proceedings and rejected the appeals. Ld. Legal Adviser to the appellant company cited case l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sub-section (3) prescribed that the interest is payable from the expiry of 7 days from the date on which Bills of Entry is returned to the importers for warehousing after duty assessment where goods fell under provision of sub-section 1(b). The framers of the law have deliberately made this distinction whereby goods imported for certain purposes listed under Section 61(1)(a) enjoy a longer period of warehousing and also do not attract payment of interest until the expiry of the warehousing period. However, in the case of goods falling under Section 61(1)(b) not only the period of warehousing which is restricted to 30 days but also that the interest burden commences after the Bills of Entry is assessed and returned to the importer. In other ..... X X X X Extracts X X X X X X X X Extracts X X X X
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