Vishal imported certain goods in May. An ‘into bond' bill of entry was presented on 14 th May and goods were cleared from the port for warehousing.…

Computation of import duty payable by Vishal Particulars Amount (US $) Assessable value 1,00,000 Amount (₹) Value in Indian currency (US $ 1,00,000 x 65.20) [Note 1] 65,20,000 Customs duty @ 10% [Note 2] 6,52,000 Add: Social welfare surcharge @ 10% on 6,52,000 65,200 Total customs duty payable 7,17,200 Notes: 1. As per third proviso to section 14(1) of the Customs Act, 1962, assessable value has to be calculated with reference to the rate of exchange prevalent on the date on which the into bond bill of entry is presented for warehousing under section 46 of the Customs Act, 1962. 2. Goods which are not removed within the permissible period are deemed to be improperly removed in terms of section 72 of the Customs Act, 1962 on the day they should have been removed [Kesoram Rayon v. CC 1996 (86) ELT 464 (SC)]. The applicable rate of duty in such a case is the rate of duty prevalent on the last date on which the goods should have been removed. As per section 61 of the Customs Act, 1962, if goods remain in a warehouse beyond a period of 90 days from the date on which the order permitting deposit of goods in warehouse under section 60 is made, interest is payable @ 15% p.a., on the amount of duty payable at the time of clearance of the goods, for the period from the expiry of the said 90 days till the date of payment of duty on the warehoused goods. Therefore, interest payable will be computed as under: Period of 90 days commencing from the date of order made under 60 expires on 19 th August No. of days for which interest shall be payable [12 days of August + 30 days of September + 14 days of October] 56 days Interest payable = 7,17,200 × 15/100 × 56/365 (rounded off) = 16,505