2000 (8) TMI 106

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....r falling under sub-heading No. 2603.00, a raw material in loose packing for manufacturing of Copper Cathode - Chapter Heading No. 7404.11. The goods were warehoused in private Custom bonded warehouse. 3.The raw material was to be utilised. However, as per the Schedule, the project could not be commissioned and as per the project report and as per the Survey, before December, 2000, there were no feasibilities of utilising the raw material and hence, the petitioner requested the Deputy Commissioner, Central Excise and Customs for re-exporting of the aforesaid goods vide letter dated February 21, 2000, vide Annexure "D". It appears that the Deputy Commissioner, Central Excise and Customs, Division I, Ankleshwar, by his letter dated 2nd May, ....

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....t exceeding the rate specified in section 47, as may be fixed by the Board, on the amount of duty payable at the time of clearance of the goods in accordance with the provisions of section 15 on the warehoused goods, for the period from the expiry of the said six months till the date of payment of duty on the warehoused goods :                                     …        …        …" Section 61(2) refers to capital goods intended for use in any hundred per cent export oriented undertaking and....

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.....L.T. 12. The Court has pointed out as under :- "... It is implicit from the language of Section 61(2) of the Act that the interest shall be payable on the amount of duty "payable or due," on the warehoused goods for the period from the expiry of period specified or granted till the date of clearance of the goods from the warehouse. In this case, on the date of clearance of the goods, no duty is payable. The goods… Calculation of interest is always on the principal amount. The "interest" payable under Section 61(1)(2) of the Act is a mere "accessory" of the principal and if the principal is not recoverable/payable, so is the interest on it. This is a basic principle based on common sense and also flowing from the language of Section 61(....