Interest on warehoused goods – Change in Act not to apply to already warehoused goods
CBEC had earlier clarified that once there is an amendment to the Act modifying the terms and conditions subject to which the goods shall ‘remain warehoused' the same shall apply to all goods which continue to be warehoused after coming into force of the amendment based on advice from the Law ministry.
But the Gujarat and Karnataka High Courts had different view and held that the notification bringing about reduction of the warehousing period is not applicable in respect of goods warehoused prior to the amendment.
A gracious Board has accepted the Court orders.
Accordingly it is now clarified that an amendment to the Customs Act modifying the terms and conditions subject to which the goods shall ‘remain warehoused', shall not apply to the goods warehoused prior to the amendment.
CIRCULAR NO. , Dated: February 14, 2007