Warehoused goods cleared after the effective date attract additional customs duty at the time of clearance under warehousing law.

Warehoused imported goods cleared on or after 4-10-1978 attracted additional duty of customs because the corresponding additional duty of excise had come into force on that date. The relevant taxable event was clearance under the warehousing provisions of the Customs Act, so the duty was chargeable at that stage. Applying its earlier ruling on the same issue, the Tribunal upheld the demand and sustained the impugned order against the importer.

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Issues: Whether additional duty of excise imposed with effect from 4-10-1978 was leviable as additional duty of customs on imported goods cleared from a bonded warehouse on or after that date.

Analysis: The appeal was transferred to the Tribunal under Section 131B of the Customs Act, 1962 and was heard in the light of an earlier decision involving the same appellant and the same point. The Tribunal treated the earlier ruling as fully applicable. It held that goods cleared from bonded warehouse after 4-10-1978 attracted the additional duty corresponding to the additional duty of excise then imposed, and the clearance under Section 68 of the Customs Act, 1962 was the relevant event for levy.

Conclusion: The additional duty of customs was correctly chargeable on the warehoused goods cleared after 4-10-1978, and the demand was upheld.

Final Conclusion: The impugned order was sustained and the importer's challenge failed.

Ratio Decidendi: Where warehoused imported goods are cleared on or after the effective date of an additional duty of excise imposed on the corresponding article, the additional duty of customs becomes chargeable on such clearance under the warehousing provisions.

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