TMI Blog1990 (8) TMI 153X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. Petitioner-Company is engaged in manufacture of a product which is one of the constituents for making textile goods. "Wood pulp" is necessary for manufacture of that product. So, the petitioner imported wood pulp America from abroad. As the imported goods arrived at Cochin Port, petitioner for his own reasons did not pay the duty. However, the Customs officials had to keep the goods in the warehouse. Petitioner executed bonds under S-59 of the Customs Act, 1962 (for short 'the Act') binding himself to pay all duties together with interest on or before the date specified in a notice of demand and to remove the goods from the warehouse for home consumption. One bond was executed on 7-3-1984 and the other was executed on 14-9-1984. Petitio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to any imported goods shall be the rate in force, in the case of goods cleared from a warehouse, on the date on which the goods are actually removed from the warehouse. S. 68 says that the importer of any warehoused interest and other charges payable thereon have been paid. 6. In Prakash Cotton Mills (P) Ltd. v. B Sen (AIR 1979 S.C. 675) the Supreme Court, after analysing S. 15 of the Act has held that the rate of duty shall be the rate and the warehouse. "The requirement of the amended S. 15 could not be ignored simply because the goods were imported before it came into force, or that their bills of lading or bills of entry were lodged before that date". Therefore the crucial date for payment of duty on goods is the date of removal of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... being fixed by the Board". When a bond envisaged in S. 59 is executed, the customs officer has power to permit the deposit of goods in the warehouse without payment of duty. , 8. A reading of the relevant provisions of the Act would show that the liability to pay interest cannot be delinked or divorced from the liability to pay duty. Both are conjunctive and must go together. The words "together with interest" in S 59(b) are sufficient to indicate that the interest is linked with duty. In other words, an importer has no liability to pay interest is an adjunct to a debt or liability. It has no separate existence. It is one of the incidents of a debt which in the absence of the latter has no sanction for enforcement. The importer's liabilit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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