https://www.taxtmi.com/caselaws?id=44359 SC held that liability to pay duty arises only on clearance from warehouse; no duty (and thus no interest under Section 61(2)) can be imposed where goods are exempt at the time of clearance. Interest under s.61(2) is accessory to the principal duty and cannot be levied independently. Where the principal duty is nil due to exemption on removal, there is no basis for interest even if goods remained in warehouse beyond permitted period. The High Court erred in holding exempted warehoused goods liable to interest on clearance. en-us Fri, 11 Oct 1996 00:00:00 +0530 Tue, 14 Oct 2025 20:27:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=44359 SC held that liability to pay duty arises only on clearance from warehouse; no duty (and thus no interest under Section 61(2)) can be imposed where goods are exempt at the time of clearance. Interest under s.61(2) is accessory to the principal duty and cannot be levied independently. Where the principal duty is nil due to exemption on removal, there is no basis for interest even if goods remained in warehouse beyond permitted period. The High Court erred in holding exempted warehoused goods liable to interest on clearance. Case-Laws Customs Fri, 11 Oct 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=44359