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2023 (3) TMI 899 - AT - CustomsDemand of duty along with interest as well as imposition of penalty under Section 112 of Customs Act - warehousing period extension not sought as well as no steps for taking delivery of the warehoused goods taken - in the meantime goods (wine) was rendered unfit for human consumption - relinquishment to the title to goods - HELD THAT:- In the facts and circumstances of this case, the appellant have exercised their right of relinquishment, as permissible under Section 68 (as amended). However, it seems that the appellant exercised the right of relinquishment when they realized that the goods are no longer fit for human consumption. It is further found that Revenue has also been sleeping over the matter and in spite of expiry of the warehousing period, as early as in June, 2004 and the last order of warehousing period expired on 16.08.2008. Revenue also kept sleeping over the period and never issued any notice for demanding the duty along with applicable interest etc., which clearly indicates the contributory negligence on the part of the Revenue. The provisions of warehousing, particularly Section 61(1) read with proviso provides, that where the goods are likely to deteriorate , the period referred to (one year) may be reduced by the authority to such shorter period as he may deem fit. Thus, there was obligation on the part of the customs authorities also to keep in mind the period of expiry of goods, which were meant for human consumption and to pass orders accordingly in the interest of Revenue. The appellant is not liable to pay duty, as till the time of relinquishment, no duty or other charges had been demanded from them. However, in the circumstances, as the appellant have also allowed the goods to deteriorate by not taking action timely to relinquish the goods within a reasonable time, they are held liable to penalty - penalty under Section 117 is imposed instead of Section 112 - reduced penalty of Rs. 1 Lakh is confirmed. Appeal allowed in part.
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