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TMI Blog1996 (11) TMI 286X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the advance licence the applicant submitted an application to the Customs authorities for warehousing the goods in bond under Section 59 of the Customs Act, 1962 till the advance licence was received and produced to the Customs authorities. 2. Accordingly the goods were bonded under Sl. No. 17 DE (B/E 17 of 1-5-1989) for a duty amount of Rs. 56,60,821/- and Sl. No. 18 (B/E 292/15-5-1989) for a duty amount of Rs. 84,45,356/-. 3. The advance licence applied by the applicant was issued on 23-8-1989. The same were produced to the Customs authorities after execution of the legal undertaking with the concerned authorities and hence the consignments were cleared from the warehouse only on 18-10-1989 and 21-10-1989 at Nil rate of duty agains ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... time of bonding. These amounts are Rs. 56,60,821/- with respect to B/E No. 17, dated 1-5-1989 and for B/E No. 292, dated 15-5-1989 the amount of interest were Rs. 84,45,356/- and he ordered the applicants to pay the above said interest on the above amount of duty. 5. Against this decision the applicants approached the Collector of Customs and Central Excise (Appeals). It was contended before the Collector (Appeals) by the applicants that they are not liable to pay interest as the advance licence issued on 23-8-1991 was on the very next day of the expiry of the bond period on 22-8-1991 and that the liability to pay interest is related to the rate of duty in force at the time of clearance of the goods from the bonded warehouse in terms of S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d period interest at the rate fixed by the Board shall be payable on the amount of duty on the warehoused goods. He held that Section 59 of the Customs Act, 1962 merely provides for executing warehousing bond in terms of which the applicant also undertakes to pay interest on the warehoused goods. He was of the view that the liability to pay interest arises in terms of Section 61(2) of the Customs Act, 1962 in this case. Therefore, he held that in the instant case the goods were liable to duty and were assessed to duty. Since the Board did not waive the interest on the abovesaid duty amount in terms of Section 61(2) of the Customs Act, 1962 he held that the appellants are liable to pay interest. With respect to the Hon ble Kerala High Court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reasonable time and is a compensation for delayed clearance of the goods. After hearing both the sides the Tribunal in Para 3 of the order has held as follows : After hearing both the parties, on consideration of the entire material on record, we are of the view that the plea urged by the learned SDR has to be accepted. The Division Bench in the ruling cited supra has observed as under : 10. Regarding the levy of interest, forming the subject matter of W.A. No. 917 of 1992. It is seen that the company has been successful in periodically securing extension of time during which the goods were warehoused. The interest sought to be levied is not under Section 61 of the Act, as amended, but only under Section 59 and the reason, for chargin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he interest of justice the matter will have to be resolved by the Hon ble Supreme Court and it is expected that the reference application should be made to the Hon ble Supreme Court through the Hon ble President of the Tribunal under the provisions of Section 130A of the Customs Act, 1962. Hence, we refer the following question of law to the Hon ble Supreme Court through the Hon ble President, CEGAT, New Delhi : Whether in the facts and circumstances of the case the findings of the Tribunal that the applicant is liable to pay interest under the provisions of Section 61 (2) of the Customs Act, 1962 with respect to the warehoused goods cleared after overstay in the warehouse free of customs duty is right? - - TaxTMI - TMITax - Customs ..... X X X X Extracts X X X X X X X X Extracts X X X X
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