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TMI Blog2006 (1) TMI 439X X X X Extracts X X X X X X X X Extracts X X X X ..... hem as per provision of the Section 61 of the Customs Act, 1962. The said Section provided for interest free warehousing for a period of one year. The interest free period of one year in the Section 61, was reduced to six months by Notification No. 30/99-Customs-(N.T.), dated 12-5-99. The said notification came into effect from 12-5-99 itself. The appellant s goods which were warehoused prior to 12-5-99, were cleared by appellants, on which they were directed to pay interest for the period of beyond six months of warehousing, relying upon the newly inserted provisions. The appellants paid the interest and subsequently filed a refund claim for the excess interest charged by the authorities. The adjudicating authority rejected the refund clai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m by the lower authorities is correct. 5. Considered the submissions made by both sides and perused the records. I find, that it is not in dispute, that the appellant s goods (imported) were warehoused by them under yellow Bill of Entry before 12-5-99, while assessing the said Bill of Entry the assessing authority had clearly indicated on the Bills of entries about the interest free period available to the appellant. I observe that the said Bills of Entries clearly specify the date from which interest shall be payable. This assessment was done by the Customs authorities at Mumbai and the goods were warehoused at Bonded warehouse, Kanpur. The reduction of interest free period by the Customs authorities at Kanpur while debonding, to my mind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated 12-5-99 which provided for a graded scale of interest in respect of goods warehoused under Section 61(1)(b) of the Customs Act, which remained in warehouse beyond 6 months from the date of warehousing. After consulting the Ministry of Law, the Board clarified that the interest as revised under Notification No. 30/99-Cus. (N.T.), dated 12-5-99 was applicable in revised of goods warehoused prior to the said date but only from the expiry of six months or 12-5-99 whichever is later. Significantly, in respect of goods warehoused prior to 12-5-99 the revised interest rate was not made applicable for a period of six months from the date of warehousing. This rule of prospective operation appears to be equally good in respect of Notification No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld be made applicable to the goods warehoused prior to the said date. Accordingly, the interest-free warehousing period of six months in full will be available to the goods warehoused prior to 1-6-2001. We have no doubt in our mind that any different view on the point will militate against the Hon ble Supreme Court's ruling in P. Mahendran s case (supra) To my mind the ratio of the division Benches, decision in above paras clearly covers the issue in this case. 6. In view of the above findings and the circumstances the interest imposed and demanded from appellant, for the warehoused goods before 12-5-99, by invoking amended provisions of Section 61 of Customs Act, is not a correct legal position. Further, it is fairly admitted by the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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