Warehoused goods attract duty on deemed removal after expiry of the permitted period, with interest running until clearance.

Warehoused goods not removed within the permitted period or any valid extension are treated as improperly removed, so the applicable duty rate is the rate in force on the date the warehousing period expires, not the rate on later actual clearance for home consumption. Interest on such goods is linked to the duty payable on that deemed removal and runs from expiry of the permitted period or extension until clearance from the warehouse. The computation cannot be shifted to an earlier notional date detached from the statutory delay in payment.

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Issues: (i) Whether, for goods remaining in a warehouse beyond the permitted period, the relevant date for determining the rate of duty is the date of deemed removal under the warehousing provisions or the date of actual clearance under the home-consumption provisions; (ii) whether interest on warehoused goods is chargeable only in cases of delayed payment of duty and how the statutory period for interest is to be computed.

Issue (i): Whether, for goods remaining in a warehouse beyond the permitted period, the relevant date for determining the rate of duty is the date of deemed removal under the warehousing provisions or the date of actual clearance under the home-consumption provisions.

Analysis: The statutory scheme treats goods not removed within the permitted warehousing period or its extension as improperly removed from the warehouse. In such a situation, the consequence follows from the deeming provision governing improper removal, and the applicable duty is the rate in force on the date when the permitted period or extension expires. The provision relating to clearance on a bill of entry for home consumption applies only where clearance is effected within the permitted period or valid extension, and not where the goods are deemed to have been improperly removed after expiry of the warehousing period.

Conclusion: The relevant date for determining duty is the date of deemed removal after expiry of the warehousing period, not the date of actual clearance under the home-consumption route.

Issue (ii): Whether interest on warehoused goods is chargeable only in cases of delayed payment of duty and how the statutory period for interest is to be computed.

Analysis: Interest under the warehousing provisions is linked to the duty actually payable and the period of delay after expiry of the permitted warehousing period. The charging of interest is not detached from the liability to pay duty, and the period runs from the expiry of the permitted period or extension until clearance from the warehouse. The computation cannot be shifted to an earlier notional date unrelated to the actual duty liability on the warehoused goods.

Conclusion: Interest is chargeable only in accordance with the delay in payment of duty on warehoused goods, counted from expiry of the permitted period or extension until clearance.

Final Conclusion: The governing rule is that post-expiry warehoused goods attract the duty rate prevailing on the date of deemed removal, and interest follows the statutory delay period applicable to warehoused goods.

Ratio Decidendi: Where warehoused goods are not removed within the permitted period or extension, they are deemed improperly removed and duty is chargeable at the rate in force on the date of expiry of that period, while interest is linked to the statutory delay in payment of the duty so determined.

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