2001 (1) TMI 183

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....ed goods cleared by the appellants after the expiry of warehousing period at nil rate of duty under the Advance Licences issued to the appellants under D.E.E.C. Scheme. 2. The admitted facts on record are that the goods imported by the appellants under OGL were allowed to be warehoused on 14-1-1995 with the filing of in-bord bill of entry. The period of three months for which the goods were eli....

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....h as their request for extension of warehousing period was rejected by the authorities, the imported goods are to be treated as illegally removed from the warehouse and were liable to payment of duty at the rate applicable from 14-4-1991. However, inasmuch as the appellants' claim for exemption under Advance Licence has been accepted by the Customs Authorities in terms of the Orissa High Court's O....

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....table to the amount of duty which is leviable on the date of their clearance. Inasmuch as there is no dispute about the nil rate of assessment in respect of the goods, no interest is payable by them. 5. Shri A.K. Chattopadhyay, learned JDR appearing for the Revenue reiterates the findings of the authorities below and draws my attention to another decision of the Supreme Court in the case of Kes....

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....ng note of the earlier decision in the Pratibha Processors held that interest on the warehoused goods is merely an accessory of the principal and if the principal is not payable, so is the interest on it. The interest under the Customs Act, 1962 has no independent or separate existence. Accordingly, I find that the issue involved in the present case is covered by the two above decisions of the Hon....