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of <h1>Tribunal rules duty liability correctly discharged under Customs Act, 1962</h1> <h3>SANMAR SPECIALITY CHEMICALS LTD. Versus COMMR. OF CUS., CHENNAI</h3> SANMAR SPECIALITY CHEMICALS LTD. Versus COMMR. OF CUS., CHENNAI - 2009 (241) E.L.T. 280 (Tri. - Chennai) Issues:1. Determination of duty rate for goods cleared from a bonded warehouse after the expiry of the warehousing period.2. Applicability of Section 15(1)(b) of the Customs Act, 1962 in determining the rate of duty for such clearances.Analysis:1. The case involved manufacturers of aromatic chemicals importing 'Ortho Tertiary Butyl Cyclohexnol' for manufacturing Ylanate Ortho. The goods were bonded in the Customs House but cleared after the bond expiry. The dispute was regarding the duty rate applicable, with the lower authorities upholding a demand based on the rate at the bond expiry. The Tribunal examined the Supreme Court's judgment in Kesoram Rayon and distinguished it, emphasizing the relevance of Section 15(1)(b) for goods cleared under Section 68 after the warehousing period.2. The Tribunal referenced the decision in Raymond Synthetics v. CC, Allahabad, highlighting that for clearances under Section 68 post-warehousing period, the duty rate is determined at the date of payment. Additionally, the Tribunal cited CBS Gramophone Records & Tapes (India) Ltd. v. CC, emphasizing that the duty rate for goods removed after warehousing should be based on the rate at the actual removal date. The Tribunal differentiated the facts of the present case from Kesoram Rayon, where goods were not cleared under Section 68, leading to a different duty rate determination.3. Ultimately, the Tribunal accepted the appellants' argument, holding that duty liability was discharged correctly under Section 15(1)(b) of the Customs Act, 1962. Relying on the precedents of CBS Gramophone Records & Tapes and Raymond Synthetics Ltd., the Tribunal set aside the impugned order and allowed the appeal, emphasizing the importance of the specific provisions governing the determination of duty rates for goods cleared post-warehousing period under Section 68.
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