Warehoused goods duty rate applies on clearance from the warehouse; refund of special additional customs duty was rejected.

Section 15 of the Customs Act, 1962 fixes the rate of duty for warehoused goods at the time of their clearance for home consumption, so the applicable duty is the rate prevailing on the date of actual removal from the warehouse. On that basis, the Tribunal applied the settled principle that the taxable event occurs when warehoused goods cross the customs barrier and are cleared. The refund claim for special additional customs duty was therefore held not maintainable, and the impugned order was upheld.

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Issues: Whether special additional customs duty paid on clearance of warehoused imported goods was refundable, and whether the applicable rate of duty was the rate prevailing on the date of actual removal from the warehouse.

Analysis: The issue was governed by Section 15 of the Customs Act, 1962, which fixes the rate of duty for warehoused goods at the time of their clearance for home consumption. The Tribunal followed the binding ratio on warehoused goods that the taxable event occurs when the goods cross the customs barrier and are cleared from the warehouse.

Conclusion: The refund claim was not maintainable. The impugned order was upheld and the appeals were rejected.

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