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2016 (12) TMI 375 - AT - CustomsDemand - goods manufactured in bonded warehouse - relinquishment of the title of goods - Held that: - the issue in the instant appeal is squarely covered by the decision of the Hon'ble High Court of Karnataka in the case of i2 Technologies Software Pvt. Ltd. [2007 (8) TMI 49 - HIGH COURT, BANGALORE], where Department contended that respondent company liable to pay the duty along with interest and penalty on the ground that goods have outlived the warehousing period – Held that department contention was not valid and set aside demand, interest and penalty. The 2nd issue which arises is the quantification of the demand for the purposes of interest. We find that the matter has been clarified by the Hon’ble Supreme Court in the case of Kesoram Rayon [1996 (8) TMI 109 - SUPREME COURT OF INDIA], where it was held that The consequence of non-removal of warehoused goods within the permitted period or the permitted extension is, by virtue of the terms of Section 72, certain. The date on which it comes to end is the date relevant for determining the rate of duty. When the duty is, in fact, demanded is not relevant. The appellants have a right to relinquish the goods. However, the interest can be recovered from the date of warehousing of the goods left in the warehouse to the date of relinquishing of the title by the appellants. Rate of duty for calculation of interest would be determined in terms of the decision of the Hon’ble Supreme Court in the case of Kesoram Rayon - appeal disposed off - decided partly in favor of appellant.
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