TMI Blog2011 (2) TMI 227X X X X Extracts X X X X X X X X Extracts X X X X ..... permitted period or during the permitted extended period - It is also a cardinal principle of construction that the provisions of a notification have to be harmoniously construed as to prevent any conflict with the provisions of the Statute It was asserted that reliance on the decision of this Court in Kesoram Rayon v. Collector of Customs, (1996 -TMI - 44311 - SUPREME COURT OF INDIA) by the High Court was clearly misplaced because unlike in the present case, the goods in that case had been removed on the basis of the order under Section 72 of the Act - Accordingly the appeals are dismissed - 2899 of 2006 - - - Dated:- 7-2-2011 - D.K. Jain and H.L. Dattu, JJ. REPRESENTED BY : S/Shri S. Ganesh, Sr. Advocate, Ms. Rohina Nath, Ms. Priyadeep, Umesh Kumar Khaitan, Advocates, with him, for the Appellant. S/Shri Harish Chander, Sr. Advocate, Arijit Prasad, Ms. Anil Katiyar, B. Krishna Prasad, Advocates, with him, for the Respondent. [Judgment per : D.K. Jain, J.]. - These appeals, by grant of leave, are directed against the judgments and orders dated 3rd April, 2006 [2006 (204) E.L.T. 546 (Bom.)] delivered by the High Court of Bombay, whereby the High Court ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se, the mandatory terms and conditions stipulated in para 2(i)(iii) of the Public Notice No. 102/96 dated 5th June, 1996. Notwithstanding, rejection of prayer for extension of Bond period, the importer continued making representations dated 21st January, 1997; 21st April, 1997; 20th May, 1997, 26th May, 1997 and 27th May, 1997 to the respondents, requesting for re-consideration of their request for extension of bond period and not to issue notice for auction of the goods. 4. In the meantime, vide notification No. 29/97 dated 1st April, 1997, issued under Section 25(1) of the Customs Act, 1962 (for short the Act ), the Central Government extended the Export Promotion Capital Goods Scheme (for short the EPCG Scheme ) for the period 1997-2002 to Agro based Industries. The effect of the notification was that the capital goods used in the manufacture of agro-products, like sugar and covered under EPCG licence, were exempted from the payment of whole of the customs duty, and additional duty leviable in terms of Section 3 of the Act, w.e.f. 1st April, 1997. Para 6.6 of Chapter 6 of the Exim Policy, containing the EPCG Scheme provided that : The licence issued under this scheme shal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... charges. 11. On receiving the confirmation letter dated 30th March, 1998, the importer sought to impugn the said confirmation order by amending the Writ Petition by filing Chamber Summons No. 72/1998 on 5th August, 1998. 12. As afore-mentioned, the High Court has dismissed the writ petition, inter alia, observing : 19. In the backdrop of the aforesaid legal position exposited by the Supreme Court in Kesoram Rayon, when we turn to the facts of the present case, it would be seen that the bond period expired in respect of two bonds on 25th December, 1996 and with regard to third bond on 1st January, 1997. Undisputedly, the application for extension of bond period made on 19th December, 1996 by the company was rejected on 13th January, 1997. That the demand under Section 72 was raised by the Proper Officer on 26th June, 1997 to pay amount of duty chargeable on account of the subject goods lying in the bonded warehouse after expiry of bonded period is not in dispute. As a matter of fact, the petitioners have not challenged the said demand made under Section 72 of the Customs Act vide notice dated 26th January, 1997. On expiry of bond period, as aforenoticed, the subject goods ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the goods on their executing bond without payment of interest but on payment of other charges. In other words, as per the interim order dated 29th April, 1998 passed by this Court, save and except, demand of interest, the company was liable to pay all other charges including the full amount of duty together with other charges as demanded vide notice dated 26th September, 1997. 13. As stated above, following this order, the second writ petition was also dismissed. 14. Hence, the present appeals. 15. Mr. S. Ganesh, learned senior counsel appearing on behalf of the appellants, strenuously urged that the impugned judgments are clearly erroneous in light of the judgment of this Court in Pratibha Processors Ors. v. Union of India Ors. - (1996) 11 SCC 101 = 1996 (88) E.L.T. 12 (S.C.) wherein this Court had observed that if by operation of an exemption, the goods cleared were duty free and if no duty was recoverable on the imported goods at the time of clearance, no interest was payable thereon under Section 61(2) of the Act. It was strenuously argued that in the instant case the goods were cleared from the warehouse under Section 68 and had not been removed on the basis of an o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... one year. Explanation. - For the purposes of sub-clause (iv), hundred per cent export-oriented undertaking has the same meaning as in Explanation 2 to sub-section (1) of Section 3 of the Central Excises and Salt Act, 1944 (1 of 1944); (b) in the case of any other goods, till the expiry of three months, after the date on which the proper officer made an order under Section 60 permitting the deposit of the goods in a warehouse : Provided that - ...... ... (ii) in the case of any goods which are not likely to deteriorate, the aforesaid period of one year or three months, as the case may be, may, on sufficient cause being shown, be extended by the Collector of Customs for a period not exceeding six months and by the Board for such further period as it may deem fit : ...... ... (2) Where any warehoused goods remain in a warehouse beyond the period of one year or three months specified in clause (a) or clause (b) of sub-section (1) by reason of the extension of the aforesaid period or otherwise, interest at such rate, not exceeding eighteen per cent per annum as is for the time being fixed by the Board, shall be payable on the amount of duty on the warehoused goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uch goods are permitted under Section 61 to remain in a warehouse; (c) where any warehoused goods have been taken under Section 64 as samples without payment of duty; (d) where any goods in respect of which a bond has been executed under Section 59 and which have not been cleared for home consumption or exportation are not duly accounted for to the satisfaction of the proper officer, the proper officer may demand, and the owner of such goods shall forthwith pay, the full amount of duty chargeable on account of such goods together with all penalties, rent, interest and other charges payable in respect of such goods. (2) If any owner fails to pay any amount demanded under sub-section (1), the proper officer may, without prejudice to any other remedy, cause to be detained and sold, after notice to the owner (any transfer of the goods notwithstanding) such sufficient portion of his goods, if any, in the warehouse, as the said officer may select. 22. The scope and purport of Section 72 was examined by this Court in Kesoram Rayon (supra). It was held that 13. Goods which are not removed from a warehouse within the permissible period are treated as goods improperly r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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