2001 (6) TMI 98

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....1)(b) Customs Act, 1962 was obtained. Therefore, the duties were confirmed as demanded, along with interest as applicable. A penalty of Rs. 16,000/- under Section 117 of the Customs Act, 1962 was also imposed by the lower authorities by treating the case to be a case of 'deemed improper removal', as held by the Supreme Court in the case of Kesoram Rayon [1996 (86) E.L.T. 464 (S.C.) = 1996 (66) ECR 201 (S.C.)]. The request to clear the goods from the warehouse at the applicable rate of duty, on the day of removal, made before the authorities was not accepted. It was found that the said request was made almost more than seven months from the lapse of warehousing period or such extended period. 2. When the matter came up for stay applicatio....

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....full amount of duty, chargeable can be demanded. However, this enabling provision can be exercised, only after the expiration of the period, during which such goods are permitted to remain the Warehouse under Section 61. Section 61 permits extension of time, for retaining the goods in the Warehouse, which can be granted by the Commissioner or the Chief Commissioner. Therefore, while the law permits the issue of a demand, casting liability on the owner to pay, such demands cannot be enforced, till the extension period of time, if granted, under Section 61 is operative. The "full amount of duty" under Section 72(1)(6) can be determined, only on the date of expiry of the extension period as granted. In the present case, extension applications ....