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TMI Blog2003 (3) TMI 469X X X X Extracts X X X X X X X X Extracts X X X X ..... t the rate in force on the date of actual removal and interest is payable on such duty. Section 61(2) covers this case squarely. In view of above impugned order is set aside with consequential benefit to the appellants. Appeal is allowed. Shri S.S. Bhagat, learned S.D.R. appearing for the Revenue states that in the case of clearance from a warehouse relating to time expired bond cases, the duty has to be charged at the rate prevailing on the date of expiry of the bond as has been held by the Apex Court in the case of Kesoram Rayon v. Collector of Customs, Calcutta - 1996 (86) E.L.T. 464 (S.C.). As such, he argues. Commissioner (Appeals) is wrong in holding in her order that the duty is payable at the rate in force on the date of actu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aforementioned, of one year and three months respectively (now referred to as the permitted period ), if the goods are likely to deteriorate. It also permits, if the goods are not likely to deteriorate, an extension of the permitted periods on sufficient cause being shown; the Collector of Customs can extend the permitted periods by six months and the Central Board of Excise and Customs can do so for as long as it deems fit. By reason of sub-section (2), interest is payable on the amount of duty on the warehoused goods for the period from the expiry of the permitted periods till the date of their clearance from the warehouse, regardless of whether the goods have remained in the warehouse beyond the permitted periods by reason of extension ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... warehouse beyond the permitted period or its permitted extension. The importer of the goods may be called upon to pay Customs duty on them and, necessarily, it would be payable at the rate applicable on the date of their deemed removal from the warehouse, that is, the date on which the permitted period or its permitted extension came to an end. 14. Section 15(1)(b) applies to the case of goods cleared under Section 68 from a warehouse upon presentation of a bill of entry for home consumption; payment of duty, interest, penalty, rent and other charges and an order for home clearance. The provisions of Section 68 and consequently, of Section 15(1)(b) apply only when goods have been cleared from the warehouse within the permitted period ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no application. 17. The consequence of non-removal of warehoused goods within the permitted period or the permitted extension is, by virtue of the terms of Section 72, certain. The date on which it comes to end is the date relevant for determining the rate of duty. 5. It is clear from the Apex Court s order extracted above that in respect of warehoused goods which remain in the bonded warehouse beyond the permitted period after expiry of the warehousing bond, the same have to be treated as improperly removed from the warehouse and the duty would be payable at the rate applicable on the date of their deemed removal from the warehouse, that is, the date on which the permitted period comes to an end. 6. It is now to be seen whether ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 61(2) deals with the payment of interest. Before the change in 1994, it requires payment of interest at such rate, not exceeding 18% per annum as is for the time being fixed by the Board on the amount of duty on the warehoused goods. After the change in 1994, it requires payment of interest as specified in Section 47 on the amount of duty payable at the time of clearance of goods in accordance with provisions of Section 15 on the warehoused goods. Both the provisions relate to payment of interest and the interest is related to the duty payable. Earlier the rate of interest was to be fixed by the Board and after 1994 the rate of interest was to be as specified under Section 47. This is the principal difference that the amendment brought abou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... permitted extension comes to an end. 8. We are unable to find any merit in the contention of the learned Advocate for the respondents that the amendment made in 1994 in the provisions relating to the rate of interest would alter the law laid down by the Apex Court in regard to the rate of duty for goods which remain in the warehouse after expiry of the bond merely because of the reference to Section 15 in the amended provisions after 1994. It is specified in Section 61(2) that the provision relating to interest applies when the goods remain in the warehouse beyond the period mentioned in Section 61(1). It makes no difference that Section 15 was not referred to in Section 61(2) prior to 1994 and it has been specifically referred to after 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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