Circular No. 43/2000-Cus

F.NO. 473/24/97-LC
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs

New Delhi, the 15th, May, 2000

Subject: Warehoused goods — rate on slab basis for different periods

    It is directed to invite your attention to the Notification No. 30/99-Customs(NT), dated 12.05.1999 providing for a graded scale of interest in case the goods warehoused under Section 61(1)(b) of the Customs Act, 1962, are not removed after the expiry of six months from the date of warehousing.

2.  A doubt has been raised whether interest is chargeable on the prevailing slab-rate by giving the benefit of the slab-rates for preceding duration of warehousing. One view taken is that the interest shall be chargeable at a single rate, i.e., at the rate applicable on the date of clearance of goods from the warehouse without taking into account the lower rates of interest for the preceding duration of the warehousing.

3.  The matter has been examined and it is clarified that the method of charging of interest at different slab rates for different periods of duration of warehousing is correct.

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