2007 (9) TMI 475

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....y on demand the duty and interest, if any, payable under sub-section 2 of Section 61. The importer did not clear the goods on expiration of the warehousing period and the department sold the consignment in auction for an amount of Rs. 1,50,000/- on 3-9-2002. As the duty due was Rs. 6,89,197/- and the realization on sale of the warehoused goods fell short of the duty due to the Government, a Show Cause Notice was issued to the appellants to recover the balance dues. After due process of law, the original authority dropped the proposals on the ground that the demand was barred by limitation and that the demand under Section 72(1)(d) was not in order. 2. The Revenue approached the Commissioner (Appeals) against the order of the origina....

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....e same from them. As per Section 72(1) of the Customs Act, the proper officer may demand and the owner of the warehoused goods shall forthwith pay duty chargeable on account of warehoused goods along with rent, interest and other charges payable in respect of such goods, inter alia, where the warehoused goods were not removed on expiration of the warehousing period. As per sub-section 2 of Section 72, if the amount so demanded was not paid by the owner, the proper officer may detain and sell the warehoused goods after issuing notice to the owner, such portion of his goods if any in the warehouse, as the said officer may select. It was submitted that in the instant case, the entire goods had been disposed by the department in auction without....

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.... Act, 1962." 6. Section 72 reads as follows : "72. Goods improperly removed from warehouse etc. - (1) In any of the following cases that is to say, - (a)     where any warehoused goods are removed from a warehouse in contravention of section 71; (b)     where any warehoused goods have not been removed from a warehouse at the expiration of the period during which such goods are permitted under section 61 to remain in a warehouse; (c)     where any warehoused goods have been taken under section 64 as samples without payment of duty; (d)  where any goods in respect of which a bond has been executed under section 59 and which have not been cleared for home c....