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CBEC - Circular
No. 13/ 96
dated 28/2/96
F. No. 483/ 12/ 95
- LC
Government of India
Ministry of Finance
Department of Revenue,
New Delhi
Subejct : Warehousing of
goods - Fresh Instructions
I am directed to refer to an audit objection from C & AG received by
the Board wherein the Audit has pointed out that the Department had failed
to initiate timely action under section 72 of the Customs Act, 1962 in
respect of the consignment of imported and bonded ship stores leading to
the loss of Government Revenue. On ascertaining the facts it was learnt
that the goods were of perishable nature and had been lying in the warehouse
ranging between one to five years. Such goods had lost their commercial
value due to prolonged storage. The facts further revealed that due care
in extending the warehousing period keeping the perishable nature of goods
in view, had not been taken. Consequently, the (i) importer relinquished
the title of the goods under section 23(2) of the Customs Act, thereby
enabling the importer for non-payment of customs duty. Had due care been
taken to raise demands keeping the limited life of the perishable goods
in view, the situation as aforesaid would not have arisen. The facts also
revealed that the department neither extended the warehousing period not
did they raise nay demand for payment of duty and interest in terms of
section 72 of the Customs Act. The loss of revenue viz. customs duty and
interest had occurred due to utter negligence of the Commissionerate staff.
In order to ensure that such situation as reported by the Audit does not
occur again the Board desires that:
i) Care
should be taken while granting extension in warehousing period particularly
to the goods having limited shelf life and/ or those of perishable nature.
ii) Where
the warehoused goods have not been removed from a warehouse at the expiration
of the period during which such goods
are permitted under section 61 to remain in warehouse, an
immediate demand should be raised against the owner of the
warehoused goods for full payment
of duty, penalties, rent, interest and other charges and if the owner fails
to comply with
a demand, steps should be taken to detain and sell the goods after due
notice to the owner,
in order to safeguard the Government Revenue.
Suitable instructions may be
issued to all concerned.
Sd/-
(K. Chopra)
Under Secretary
to The Govt. of India