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TMI Blog2007 (12) TMI 117X X X X Extracts X X X X X X X X Extracts X X X X ..... d that certain bonded goods have become obsolete and they would not be further useful for the developments of software. It was also noticed that in many cases the appellants had not applied for extension of the warehousing period. Therefore, in respect of 106 Bonds the duty liability was worked out to Rs. 7,08,680/- and interest Rs. 35,448/-. In view of this, the appellants paid the duty liability along with the interest. The lower authority passed a detailed order in which the duty liability and interest was confirmed. However, a penalty of Rs.7,00,000/- was also imposed on the appellant under Section 112 of the Customs Act. Aggrieved over the order, the appellant approached the Commissioner (Appeals) who upheld the order of the lower auth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal in the case of Natural Stone Exports Ltd. v. CC, Bangalore - 2006 (198) E.L.T. 440 (Tri.-Bangalore) wherein it is held that capital goods having not been cleared from the warehouse, demand of duty is premature. 5. The learned Departmental Representative reiterated the impugned order. 6. On a very careful consideration of the issue, we find that in the present case the goods, even though they are obsolete, are still in the bonded premises, they have not yet been cleared. Moreover, it is on record that the bonded premises licence is valid till 4-5-2009. Therefore, in terms of the Board's Circular 7/2005 dated 14-2-2005, the warehousing period automatically gets extended. Extracts of the said circular are given below: The matter h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /STP unit having obtained a warehousing licence on 1-1-1999 would fall due for renewal after initial 5 years period on 1-1-2004. In this case, (i) Assume a C.G has been warehoused on 1-1-2002. Hence, its extension of warehousing falls due on 1-1-2007 (ii) The warehousing licence under Section 58 becomes due for renewal on 1-1-2004, and the same would be renewed for further five year period i.e. up to 1-1-2009 (iii) Extension of warehousing period for C.G. at (i) above would also be given on 1-1-2004 along with renewal of warehousing licence for a period up to 1-1-2009] 7. In view of the above circular, the warehousing period of the impugned goods gets extended up to 4-5-2009. Therefore, the confirmation of duty and interest is premature ..... X X X X Extracts X X X X X X X X Extracts X X X X
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