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TMI Blog2008 (7) TMI 793X X X X Extracts X X X X X X X X Extracts X X X X ..... iswanathan, learned Advocate appeared for the Respondents. 3. The Respondent is a 100% E.O.U. They imported two consignments of Cyanuric Chloride and warehoused the same. The permitted warehousing period expired. The Assistant Commissioner initiated the proceedings against the Respondents and demanded duty along with interest @ 20%.: The duty was paid by the respondents. The interest was also demanded from the date of expiry of the warehousing period in terms of Section 61(1) of the Customs Act, 1962. Therefore the interest was also confirmed. The respondent was aggrieved over the decision of the Original authority. Hence they appealed to the Commissioner (Appeals). On examining the entire matter and relying on the decision of the Hon ble ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d beyond the permitted/extended period of warehousing, in addition to duty, interest at such rate as is fixed by the board for the time being shall be payable, on the amount of duty on the warehoused goods for the period from the expiry of permitted/extended period of warehousing till the dated of payment of duty. In Kesoram Rayan v. Collector of Customs, Calcutta [1996 (86) E.LT. 464 (S.C.)], it was held that when goods remained in bonded warehouse beyond the permitted warehousing period or the permitted extended period, the goods are to be treated to have been improperly removed from the bonded warehouse and the date on which validity period come to an end is the date relevant for determining the rate of duty. Interest is the compensatory ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty for waiver of interest and no other lower authority can issue an order on his behalf. He said that even though the respondents had applied for waiver of interest and also for extension of warehousing period, no orders had been issued. 6. On a very careful consideration of the matter, we find that even though the respondents had applied for extension of warehousing period and also for waiver of interest, no decision appears to have been taken by the Chief Commissioner. That apart, the Commissioner (Appeals) has clearly brought out that the interest liability can arise only after a demand notice is issued. He relied on the Delhi High Court s judgment which in turn relied on the Hon ble Supreme Court judgment rendered in the case of Union ..... X X X X Extracts X X X X X X X X Extracts X X X X
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