Warehousing - Charging of interest @18% per annum on the amount of Customs duty in respect of warehoused goods.

Document Text

F.No.473/1/89-Cus.VII Government of India, Central Board of Excise and Customs. New Delhi, the 11th January, 1989. Subject: Bonded warehouses- Charging of interest @18% per annum on the amount of Customs duty in respect of warehoused goods – Clarification Reg. I am directed to refer to the notification No.59/88-Customs dated 20-09- 1988 which has the effect of amending the earlier Notification No.143/83-Cus. dated 13-5-1983 by enhancing the rate of interest from 12% to 18% per annum and to say that a doubt was raised as to whether the increased rate of 18% per annum would apply retrospectively for clearances of warehoused goods effected on or after 20-9-88. Some Collectorates have reportedly levied interest in respect of such goods at the rate of 18% per annum for the entire period of warehousing (excluding the initial warehousing period under sub-section 1 of section 61 of the Customs Act,!962) even for the period prior to 20th September, 1988. Advice of the Ministry of Law was sought in the matter. It was opined that 2. no retrospective effect can be given to the notification unless the enabling section/provision of the parent act specifically empowers the Board to make it retrospective. Hence an importer would be liable to pay 12% interest from the expiry of initial warehousing period till 19-9-88 and 18% interest from 20-9-1988 onwards. 3. All pending cases may be disposed off accordingly. 4. Hindi version will follow.

HS Codes Referenced

Acts & Provisions Referenced

• Customs Act,!962) even for the period prior to 20th September, 1988.

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