Regarding warehousing interest

This query is : Resolved

CA munna singh (Querist)
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19 February 2013 what is rate of interest on warehoused goods kept beyond the period?

my client is a manufacturing concern then what will be warehousing period for it?

Regards,

munna.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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28 February 2013 CBEC had clarified in Circular No. 15/2009 - cus dated 12.05.2009, that the provisions of Section 47 (2) are not attracted in case of clearances made under Section 68. Consequently, no interest is liable to be paid on goods deposited in a warehouse and being cleared for home consumption by filing the Bill of Entry prescribed under Section 68 of the Act, ibid, for delayed payment of duty i.e. if the importer fails to pay the duty within 5 working days from the date on which such Bill of Entry is returned to him for payment of duty. However, interest on warehoused goods is payable when they remain in a warehouse beyond the period specified in sub-section (1) of Section 61 as per provisions of sub-section (2) of Section 61.

'It may be noted that Circular 15/2009 Customs was not issued to clarify on the subject of the effective date from which interest would be chargeable for various categories of warehoused goods. The Circular seeks to clarify the issue as to whether interest is chargeable under Section 47(2) of Customs Act, 1962 on goods deposited in a warehouse and for which a Bill of entry for home consumption has been filed under Section 68 of the said Act, if the duty is paid after 5 working days from the date on which such Bill of Entry is returned to importer for payment of duty.

Regards,