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2015 (12) TMI 656 - AT - CustomsDemand of interest on duty paid on DTA clearances of warehoused goods - 100% EOU - Held that:- Impugned goods were imported duty free and warehoused as per the warehouse provisions. The warehousing provisions specify that the same can be warehoused till expiry of three years as per Section 61 (i) (a) of the Customs Act, 1962. The duty liability on the goods will arise only after expiry of such time limit, or when the goods are cleared from the warehouse before that time limit. In the instant case, the appellants had imported the goods during the period June 2010 to March 2011 and they had cleared the goods on 13.09.2011. Therefore, clearances of the goods have been done clearly within the permitted period of three years and there is no contravention. As regards the duty, the appellant had sought permission from the Customs department for clearing the goods, and they had deposited the duty amount voluntarily. Therefore, there is no occasion to demand interest from the appellant as there is no delay in payment of the duty. Interest can be levied only if there is delay in payment of duty, which is not the case herein. Therefore, we find no reason to demand interest from the appellant. Consequently, there is also no reason for imposition of penalty, as the appellant has not violated any of the provisions nor delayed the payment of duty. - Impugned order is set aside - Decided in favour of assessee.
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