2000 (8) TMI 823

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....n 2-12-1991. By letter dated 18-11-1991, the respondents sought extension of warehousing period by further two months. No orders were passed on this letter; however, they were informed by letter dated 26-11-1991 to clear cargo from the warehouse. They represented once again on 18-12-1991 to consider extension on the ground that the factory was facing labour unrest and strike. However, they were informed by the Assistant Collector vide telex dated 23-12-1991 to clear the goods. The respondents again requested for extension till 20-1-1992, vide their letter dated 14-1-1992. On 16-1-1992, Notification 21/92-Cus. was issued, reducing the rate of duty on the imported items. On 21-1-92, the respondents filed a Bill of Entry for home consumption f....

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....iz. as to what is the relevant date for determining the rate of duty applicable to the goods cleared from a warehouse after the expiry of the warehousing period, was referred to a Larger Bench along with the appeal of M/s. Raymond Synthetics and the Department's appeal against M/s. Ester Industries. Vide the decision of the Larger bench Misc. Order No. 39-41/2000-C dated 9-5-2000 [2000 (119) E.L.T. 205 (Tribunal - LB)], it was held as under : "Following the ratio of the Supreme Court judgment cited supra, we hold that the relevant date for determination of rate of duty on goods cleared from a warehouse after the expiry of the warehousing period is the date of the deemed removal. In cases where notice under Section 72 of the Customs Ac....

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....rance can be allowed only after assessment of duties on the Bill of Entry and payment of duties, penalties, rent, interest and other charges. Therefore, clearance of all warehoused goods for home consumption, whether within the warehousing period or thereafter can be effected only after assessment on Bill of Entry and payment of duties. On the other hand, Section 72 deals with assessment of goods improperly removed from a warehouse i.e. goods cleared after the expiry of the warehousing period. It, therefore, follows that, in the case of clearance of warehoused goods after expiry of the permitted warehousing period, Bill of Entry filed for clearance of the goods in terms of Section 68 is to be assessed as per orders passed by the Proper Offi....