F.No. 473/24/97- LC
Government of India
Ministry Of Finance
(Department of Revenue), New Delhi
Subject : Warehousing- Charging of interest under Section 61 of the Customs Act – clarification regarding
I am directed to invite your attention to Notification No. 30/99- Customs (NT) dated 12.5.99 providing for a graded scale of interest in case the goods warehoused under sub-clause (b) of clause (1) of Section 61 of the Customs Act, 1962 are not removed after the expiry of six months from the date of warehousing.
2. Board has received a number of representations/ references seeking clarification as to whether the graded scale of interest notified vide Notification No. 30/99-Customs (NT) dated 12.5.99 would be applicable in respect of goods warehoused before 12.5.1999 but cleared after that date or whether these rates would apply only to the goods warehoused on or after 12.5.1999.
3. The matter was examined in consultation with the Ministry of Law which has opened that revised interest effective from 12.5.1999 is applicable in respect of goods warehoused prior to that date but only from the expiry of six months or 12.5.1999 whichever is later.
4. All such cases where goods have been allowed to be removed from the warehouses on or after 12.5.1999 may be reviewed and decided in the light of these instructions.