Interest on warehoused goods cleared within time cannot be levied without express statutory authority or court direction

Interest under Section 61(2) of the Customs Act was treated as inapplicable where warehoused goods were cleared within the permitted period under judicial protection and duty was paid later after the dispute ended. The Tribunal reasoned that the provision operated only when goods were removed beyond the warehousing period, and in the absence of an express statutory basis or any court direction to pay interest, the demand could not be sustained. On that footing, the request for reference was declined and the application failed.

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Issues: Whether interest was chargeable under Section 61(2) of the Customs Act, 1962 on duty withheld in respect of warehoused goods cleared within the permitted period pursuant to a court order, and whether the questions raised required reference.

Analysis: The Tribunal followed its earlier view on an identical issue and held that Section 61(2) applies only where warehoused goods are removed beyond the warehousing period. Where clearance takes place within the permitted period under judicial protection and the duty is paid later after the dispute is resolved, there was at the relevant time no express statutory provision authorising levy of interest. In the absence of any direction in the court order to pay interest, no demand for interest could be sustained, and the questions were not fit for reference.

Conclusion: The demand for interest was not sustainable and the request for reference was declined.

Final Conclusion: The application failed and stood dismissed.

Ratio Decidendi: In the absence of an express statutory provision or a court direction, interest cannot be levied on duty paid after clearance of warehoused goods within the permitted period.

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