TMI Blog2000 (5) TMI 65X X X X Extracts X X X X X X X X Extracts X X X X ..... Bill of Entry. The conditions of Section 68 of the Customs Act were not fulfilled by the appellants. Section 15(1)(b) of the Customs Act becomes applicable when the goods are cleared from a warehouse under Section 68. In the present case the imported wood pulp was not cleared from the warehouse under that Section. After the expiry of warehousing period, the goods ceased to be warehoused goods and the removal of the goods was under an order passed by the Assistant Collector under Section 72 of the Customs Act. In such a case, the rate of duty applicable to the goods will be the rate of duty in force on the day of filing of Into-Bond of Bill of Entry as provided in Section 15(l)(a) of the Customs Act read with proviso to Section 15(1) and Section 46 ibid". As against the above, it was held in the CBS Gramophone Records and Tapes (India) Ltd. that "a plain reading of the above provision (Section 61(2) of the Customs Act) shows that it envisages a situation where warehoused goods continued to remain in the warehouse beyond the permissible period of three months or one year, as the case may be, by reason of the extension of the said period or otherwise, and provides for payment of inte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pired in February 92. Regarding remaining 440 MTs imported, Bill of Entry was filed on 27-4-1992 and duty was paid on 6-5-1992 and the goods were cleared on 8-5-1992. Interest amount of Rs. 1,52,853/- and Rs. 7110/- was also paid. This quantity is not the subject matter of the present case. On 4-7-1998, a show cause notice was issued to the appellants alleging contravention of the provisions of Section 68(b) of the Customs Act as warehoused goods had been cleared without payment of interest and proposing recovery of interest of Rs. 2,08,644/-(Rs.2,01,534/- in respect of Bill of Entry covering 300 MTs of PTA and Rs. 7110/- in respect of Bill of Entry covering 440 MTs of PTA. Vide order dated 22-9-1992, the Assistant Collector confirmed the demand of Rs. 7110/- but dropped the proceedings relating to recovery of Rs. 2,01,534/-. The Assistant Collector's order was reviewed by the Collector and an appeal was filed to the Collector (Appeals) who vide his order dated 17-6-1993 held that, in terms of Section 15(l)(b) of Customs Act, the rate of duty applicable on warehoused goods will be that prevalent on the date of actual removal of the goods from the warehouse i.e. 6-5-1992 and, theref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Customs Act and proposing detention and sale in auction of the goods to recover dues, as the goods ceased to be bonded goods w.e.f. 2-12-1991. Before the date of adjudication, i.e. 1-3-92, Notification 124/92 was issued regarding auxiliary duty. The Assistant Collector vide order dated 7-4-1992 directed payment of duty on the entire quantity of melting scrap at the rate prevailing on 3-12-1991 and also interest at the rate applicable on the duty amount so calculated till the date of clearance of the consignment. He also imposed a penalty of Rs. 25,000/- on the importers, in terms of Section 72 of the Customs Act. The lower appellate authority (vide his order dated 30-6-1992) before whom the importers filed an appeal, set aside the order-in-original of the Assistant Collector and directed him to assess the goods in terms of Section 15(1)(c) subject to collection of interest and other charges, if any. In July 92, the Revenue preferred an appeal bearing No. C/1663/92-B2 to the Tribunal. On 7-8-1992, the Bill of Entry was reassessed at the prevailing rate on 7-8-1992 after extending the benefit of Notification 21/92 and 124/92. 2.3 Collector of Customs, Kandla v. M/s.Ester Industr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble on the date of their deemed removal from the ware house i.e. the date on which the permitted period or its permitted extension came to an end. The relevant paragraphs of the Apex Court judgment are reproduced below : 10. Section 61 prescribes the period for which goods may be warehoused. They may be left in the warehouse in which they are deposited for the period of one year if they are such goods as are referred to in clause (a) of sub-section (1), and for the period of three months counted from the date of the order permitting warehousing if they are not such goods. The first proviso to sub-section (1) contemplates the reduction of the periods aforementioned, of one year and three months respectively (now referred to as "the permitted periods"), if the goods are likely to deteriorate. It also permits, if the goods are not likely to deteriorate, an extension of the permitted periods on sufficient cause being shown; the Collector of Customs can extend the permitted periods by six months and the Central Board of Excise and Customs can do so for as long as it deems fit. By reason of sub-section (2), interest is payable on the amount of duty on the warehoused goods for the perio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the warehouse within the permitted period or its permitted extension and not when, by reason of their remaining in the warehouse beyond the permitted period or its permitted extension, the goods have been deemed to have been improperly removed from the warehouse under Section 72. 16. The permitted period for warehousing the said bales came to an end on 15th September, 1984, but the said bales remained in the bonded warehouse thereafter. The said bales, by reason of the provisions of Section 72, were deemed to have been improperly removed from the bonded warehouse on that day and subject to duty at the rate then in force. The demand notice dated 8th May, 1985, called upon the appellants to pay such duty. The order dated 25th June, 1985, pertaining to the appellants' private bonded warehouse, rightly made it clear that the said bales had not been cleared therefrom on an ex-bond bill of entry under Section 68 but under Section 72. While the appellants may have filed an ex-bond bill of entry pertaining to the said bales on 30th May, 1985, there is nothing on record that suggests that clearance thereon under Section 68 was ordered. Section 15(1(b) has, therefore, no application. 17. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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