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TMI Blog2000 (8) TMI 106X X X X Extracts X X X X X X X X Extracts X X X X ..... o. 2603.00, a raw material in loose packing for manufacturing of Copper Cathode - Chapter Heading No. 7404.11. The goods were warehoused in private Custom bonded warehouse. 3.The raw material was to be utilised. However, as per the Schedule, the project could not be commissioned and as per the project report and as per the Survey, before December, 2000, there were no feasibilities of utilising the raw material and hence, the petitioner requested the Deputy Commissioner, Central Excise and Customs for re-exporting of the aforesaid goods vide letter dated February 21, 2000, vide Annexure "D". It appears that the Deputy Commissioner, Central Excise and Customs, Division I, Ankleshwar, by his letter dated 2nd May, 2000, vide Annexure "I", com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said six months till the date of payment of duty on the warehoused goods : … … …" Section 61(2) refers to capital goods intended for use in any hundred per cent export oriented undertaking and any other goods than the capital goods in India for use in any hundred per cent export-oriented undertaking. As the goods were meant for home consumption, sub-clause (ii) of clause (2) of Section 61 will have to be considered. Sub-clause (ii) refers to the two important aspects, viz. - (i) amount of duty payable at the time of clearance of the goods; and (ii) till the date of payment of duty on the warehoused goods. Thus, it is clear that if the goods remained in a warehouse beyond a period of six ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e under Section 61(1)(2) of the Act is a mere "accessory" of the principal and if the principal is not recoverable/payable, so is the interest on it. This is a basic principle based on common sense and also flowing from the language of Section 61(1)(2) of the Act......" The Court further pointed out :- "... When such principal amount is nil because of the exemption, a fortiori, interest payable is also nil. In other words, we are clear in our mind that the interest is necessarily linked to the duty payable. The interest provided under Section 61(2) has no independent or separate existence....." Thus, question of payment of interest does not arise. Mr. Shah appearing for the Revenue submitted that in the case before the Apex Court, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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