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2016 (9) TMI 470 - CESTAT MUMBAI

2016 (9) TMI 470 - CESTAT MUMBAI - 2016 (341) E.L.T. 444 (Tri. - Mumbai) - Chargeability of interest warehoused goods private bonded warehouse interest free period of 180 days - the notification No. 23/2001-Cus(NT) dated 22/5/2001,issued, effective from 1/6/2001, the interest was chargeable after expiry of bond period of 30 days interest chargeable on over and above 30 days or 180 days? Held that: - the goods were warehoused prior to issue of Notification No. 23/2001-Cus(NT) during tha .....

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fect - appellant are entitled for the interest free period of 180 days in respect of goods warehoused prior to 1/6/2001, cleared for home consumption thereafter appeal allowed decided in favor of appellant. - C/349/05 - A/89209/16/CB - Dated:- 25-7-2016 - Mr. Ramesh Nair, Member (Judicial) and Mr. Raju, Member (Technical) Shri. Anil Balani, Advocate for the Appellants Shri. Kamal Puggal, Asstt. Commissioner(A.R.) for the Respondent ORDER This appeal is directed against Orders-in-Appeal No. P .....

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est was chargeable after expiry of bond period of 30 days. The appellant had cleared warehoused the goods during the period June, 2001 to December, 2001 and interest was paid considering 180 days as interest free period. The Revenues contention is that since the goods remained bonded after issuance of Notification 23/2001-Cus(NT), the interest free period is available to the appellant is only 30 days and interest is chargeable over and above the 30 days of bonding of the goods. 3. Shri. Anil Ba .....

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s submission, he placed reliance on the following decisions. (a) Commissioner of Central Excise, Chennai Vs. Caterpillar India Ltd [2009(237) ELT 349(Tri. Chennai)] (b) LML Ltd Vs. Commissioner of Customs, Kanpur [2006(201) ELT 110(Tri. Del)] (c) Jindal Steel & Power Ltd Vs. Commissioner of Central Excise, Raipur [2004(172) ELT 239] (d) Collector of Customs & Central Excise Vs. J.K. Synthetics Ltd [1991(56) ELT 236(Tri.)] 4. Shri. Kamal Puggal, Ld. Asstt. Commissioner(A.R.) appearing on .....

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ding period of 180 days. Under that provision the appellant has executed the bond and warehoused the goods. Though the Notification No. 23/2001-Cus reduced period of 180 days to 30 days w.e.f. 1/6/2001 but goods which already warehoused prior to that date, will not be governed by amended notification, particularly for the reason that the period of 180 days provided under statue was not curtailed by this statue. In our view, reduced period of 30 days will apply only in respect of goods warehoused .....

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oner of Central Excise, Raipur [2004 (172) E.L.T. 239 (Tri.-Del.)], LML Ltd. v. Commissioner of Customs, Kanpur [2006 (201) E.L.T. 110 (Tri.-Del.)] and Jindal Vijayanagar Steel Ltd. v. Commissioner of Customs, Mangalore [2007 (207) E.L.T. 65 (Tri.-Bang.)]. [This decision has been upheld by the Hon ble Karnataka High Court as seen from 2008 (222) E.L.T. 35 (Kar.)]. Following the ratio of the above decisions, we hold that there is no warrant to interfere with the impugned order of the Commissioner .....

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arly specify the date from which interest shall be payable. This assessment was done by the Customs authorities at Mumbai and the goods were warehoused at Bonded warehouse, Kanpur. The reduction of interest free period by the Customs authorities at Kanpur while debonding, to my mind, would amount reassessment of the Bill of Entries, which could not have be done without following the proper of process of Law. Be that as it may, a division Bench of the Tribunal in the case of Jindal Steel & Po .....

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re-amendment provision of Section 61(2)(ii) alone would apply. For illustration, if any goods were warehoused on 15th May, 2001, it would be entitled to remain warehoused without interest on duty till 14th November, 2001 and interest would be leviable in respect of such goods only from 15th November, 2001. This, in our understanding, is what is meant by the plea of prospective operation of the amended provision of Section 61(2)(ii) supra. We find much force in this argument of the counsel for th .....

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consulting the Ministry of Law, the Board clarified that the interest as revised under Notification No. 30/99-Cus. (N.T.), dated 12-5-99 was applicable in revised of goods warehoused prior to the said date but only from the expiry of six months or 12-5-99 whichever is later. Significantly, in respect of goods warehoused prior to 12-5-99 the revised interest rate was not made applicable for a period of six months from the date of warehousing. This rule of prospective operation appears to be equa .....

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ly held that the provision would have to be interpreted in the light of the generally accepted principle of statutory construction that every statute was prima facie prospective unless it was expressly or by necessary implication given retrospective operation. The Tribunal further noted that it is also well accepted that every statute which takes away or impairs vested rights acquired under existing laws, or which creates a new obligation or imposes a new duty, must be presumed to be intended no .....

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as it stood prior to 1-6-2001 should be made applicable to the goods warehoused prior to the said date. Accordingly, the interest-free warehousing period of six months in full will be available to the goods warehoused prior to 1-6-2001. We have no doubt in our mind that any different view on the point will militate against the Hon ble Supreme Court's ruling in P. Mahendrans case (supra) To my mind the ratio of the division Benches, decision in above paras clearly covers the issue in this c .....

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it is held that, the reduced interest free period will be applicable, even to the goods warehoused prior to 12-5-99 is set aside. As the appellant is ready to produce the evidence of non-passing of the amount to the buyer, I remand the matter to the adjudicating authority to consider the evidence produced by the appellant and pass appropriate order in respect of the refund claim, after granting a opportunity of hearing to the appellant. Ordered accordingly. J.K. Synthetics Ltd 7. [Order per : D. .....

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one year to three months and a provision was inserted providing for charging interest on the amount of duty for the extended period of warehousing. In the present case, original warehousing period of one year was extended on the request of the importer after 13-5-1983. They also undertook to pay interest, if payable. The Order-in-Original of the Assistant Collector shows that interest was charged when initial period of bonding of one year expired. In other words, interest has been charged for t .....

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