Warehoused goods attract duty at the rate in force on clearance, not the earlier assessment date.

Warehoused goods are chargeable at the rate of duty in force on the date of clearance from the warehouse, because Section 15(b) of the Customs Act, 1962 fixes the relevant rate by reference to actual removal under Section 68. The argument that an initial assessment under Section 17 prevents application of the later rate, and that only provisional assessments under Section 18 can do so, was rejected as a misreading of the statute. The higher rate prevailing on the date of clearance was therefore correctly applied, and the challenge to reassessment failed.

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Issues: Whether warehoused goods are liable to be assessed at the rate of duty in force on the date of clearance from the warehouse, even if that rate was not in force on the date of warehousing or initial assessment.

Analysis: The rate applicable to goods cleared from a warehouse is governed by Section 15(b) of the Customs Act, 1962, which fixes the relevant duty rate as the one in force when the goods are actually removed from the warehouse under Section 68. The contention that the original assessment under Section 17 exhausted the matter, and that only provisional assessments under Section 18 could attract the later rate, was rejected as a misreading of the statute.

Conclusion: The higher rate prevailing on the date of clearance was correctly applied, and the challenge to reassessment failed.

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