Customs duty interest on warehoused goods was not payable where clearance was timely and no statute authorised interest.

Interest on customs duty for warehoused goods cleared within the permitted period was not chargeable where payment was withheld under a court injunction and no express statutory provision or judicial direction authorised interest. Reading Sections 59 and 61 of the Customs Act together, Section 61(2) applied only to goods removed beyond the warehousing period, so it did not extend to this factual situation. The delayed duty payment therefore did not attract interest, and the levy could not be sustained on the basis of the then existing law.

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Issues: Whether interest was chargeable on duty payable on warehoused goods that were cleared within the permitted warehousing period but without payment of duty because of a court injunction, in the absence of an express statutory provision or court direction.

Analysis: Section 61(2) of the Customs Act, 1962 applies where warehoused goods are removed beyond the permitted period, and not to goods removed within the permitted period. Reading Sections 59 and 61 together, there was no statutory provision then in force authorising levy of interest in a situation where duty was withheld because of the court's injunction and was paid only after the levy was upheld. No direction for payment of interest had been made by the court.

Conclusion: Interest was not chargeable, and the answer to the reference was against the Revenue and in favour of the respondent.

Final Conclusion: In the absence of an express charging provision or judicial direction, no interest could be demanded on the delayed payment of duty in the facts of the case.

Ratio Decidendi: Interest on customs duty cannot be levied for delayed payment in respect of warehoused goods cleared within the permitted period unless the statute expressly provides for such levy or the court has directed payment of interest.

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