Supreme Court upholds warehousing period extension, recalculates interest, directs payment.

The Supreme Court upheld the previous judgment regarding the extension of the warehousing period for imported goods, dismissing the appellant's appeal. The Court directed the recalculation of interest on the duty amount, agreeing with the appellant's concerns over incorrect calculations. The appellant was given two months to pay the balance amount of interest, after which the Bank Guarantee would be discharged.

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Issues:
1. Extension of warehousing period for goods imported.
2. Calculation of interest on duty amount.

Extension of Warehousing Period:
The appellant-assessee entered into a contract for supply and installation of an Air Separation Plant (ASP) with a Chinese corporation. After filing a Bill of Entry for warehousing the goods, the appellant sought extensions for removing the goods beyond the original period. Despite removing some goods, some remained uncleared, leading to a Show Cause Notice demanding duty payment for the uncleared goods beyond the extended period. The appellant paid the duty amount without interest, which was later adjusted. The appeal before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) was dismissed. The appellant argued that the case is covered by a previous judgment but sought a larger Bench reference. The Supreme Court held that the previous judgment correctly depicted the law, leading to the dismissal of the appeal on this aspect.

Calculation of Interest on Duty Amount:
The appellant raised concerns regarding the calculation of interest charged on the duty amount. Two main issues were highlighted: first, interest was charged from an earlier date than when the liability arose, and second, a higher interest rate was applied than what was prevalent during the period. The Court agreed with the appellant's arguments on both counts. While dismissing the appeal concerning interest, the Court directed the Commissioner to recalculate the interest within a month, considering the correct periods and rates. The appellant was given two months to pay the balance amount of interest, after which the Bank Guarantee would be discharged.

In conclusion, the Supreme Court upheld the previous judgment regarding the extension of the warehousing period and directed the recalculation of interest on the duty amount, addressing the appellant's concerns over incorrect calculations.

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