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TMI Blog1992 (2) TMI 91X X X X Extracts X X X X X X X X Extracts X X X X ..... d actual user of raw materials like H.R. Coils, Work Rolls for manufacturing of Cold Rolled Coils/Strips etc. The Company had entered into confirmed contracts with foreign suppliers for import of the above raw materials and had opened irrevocable Letters of Credit in their favour, prior to 23rd December 1991 from which date Sec. 59A of the Customs Act, 1962 ("the Act") has come into force. Sec. 59 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n places as warehouse stations. In those stations, either a public warehouse can be appointed or approved warehouse can be licensed. Warehoused goods can be cleared for home consumption under Section 68 of the Act at any time upon payment of duty on the goods at the rate prevailing on the date of their removal from the warehouse. The above facility which was given almost in blanket form is withdra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot be said to be unreasonable and not in public interest. Quite obviously this provision will expedite realisation of the revenue and ensure prompt payment of duties, by discouraging an indiscriminated warehousing. 5. The grievance that Section 59A is applied retrospectively is altruistic. The material date for application of Section 59A is the date of order of warehousing and not the date of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s very rare. There is no statutory bar against payment of interest in such an eventuality. As and when such unlikely situation arises, demand for the interest can be made with the Department or in the appropriate forums/courts and can in appropriate cases be granted. On the touchstone of absence of such a provision, therefore, the validity of Section 59A cannot be tested. 7. Article 265 cannot b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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