2023 (3) TMI 899

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....iquor, country liquor and fertilizers. The appellant imported wine and got these warehoused in the private/public bonded warehouse Viz. CWC Okhla-I, New Delhi. Table Sl. No. Item  Nam e  Bill of Entry no. & date Date of First Warehousing Expiry date of initial  warehouseing period Qty (pcs./pk gs) of  goods Value  (Rs.) Total  Duty (Rs.) 1. 2             3   4   5      6      7 8 2. Wine 105558/13.06.2003 23.06.2003 22.06.2004  209     8,402   35,112 3.  -do- 100054/11.01.2004 09.01.2004 08.01.2005         &nb....

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....en accepted by the Department. The appellant in reply dated 20.12.2014 drew attention to the letters of the relinquishment mentioned hereinabove. Thereafter, the Revenue issued letter dated 24.04.2015 to the effect that the normal warehousing period under Section 61 is one year, which is extendable for further six months or any further period, subject to permission of the appropriate authority. Further, Section 72(1)(b) of the Act provides that, wherein any warehoused goods are not removed at the expiration of the period permitted under Section 68 of the Act, are considered as goods improperly removed and the owner of such goods is required to pay the full amount of duty chargeable together with all penalties, rent, interest and other charg....

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.... been held that the goods, which are not removed from a warehouse within the permissible period, are treated as goods improperly removed. The importer may be called upon to pay customs duty on such goods. Being aggrieved, the appellant is before this Tribunal. 5. Ld. Counsel for the appellant, inter alia, urges that the ruling of the Apex Court in the case of Kesoram Rayon is no longer applicable as the law has gone subsequent changes. Section 68 has undergone change by subsequent amendments by Finance Act, 2016 dated 14.05.2016, by way of substitution and also by other amendments from time to time. He further points out that the 2nd proviso to Section 68 evidently provides - the owner of any warehouse goods, may, at any time, before an or....

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....s provided under Section 72((1)(a) of the Act, the full amount of duty chargeable together with all penalties and interest by reason of allowing the said goods to remain in the warehouse after the expiration of the warehousing period permitted under Section 61(1)(a) or extended period under proviso to Section 61(1), despite the company intimating the Customs Department in writing the relinquishment of its title to the said goods in terms of Sections 23(2) and 68 of the said Act? 7. The Hon'ble High Court answered both the questions in the negative and in favour of the respondent-company and dismissed the appeal of the Revenue. However, the High Court allowed liberty to the Commissioner to recover from the respondent company the rent, inter....

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.... to be detained and sold, after notice to the owner with respect to such quantity of goods, as the officer may deem fit. Accordingly, prays for dismissing of the appeal and upholding the impugned order. 9. Having considered the rival contentions, I find that in the facts and circumstances of this case, the appellant have exercised their right of relinquishment, as permissible under Section 68 (as amended). However, it seems that the appellant exercised the right of relinquishment when they realized that the goods are no longer fit for human consumption. I further find that Revenue has also been sleeping over the matter and in spite of expiry of the warehousing period, as early as in June, 2004 and the last order of warehousing period expir....