An importer, imports some luxury items and deposited the same in a warehouse on 1st September, 2019, due to lack of demand, he applies for extension of warehousing period and department granted the extension till 31 Dece

As per section 61 of the Customs Act, 1962, the imported goods can be deposited in a warehouse for a maximum period of one year subject to extension in some cases. Thus, removal of goods should be planned properly and the goods shall be moved within the prescribed period, else there will be necessary penalties resulting in sheer loss of money. Every effort must be made to see that the goods are cleared from the warehouse in time before the goods get destroyed or damaged beyond repair. No remission is granted on such goods deposited in a warehouse where the importer failed to clear within the stipulated time. In the case of 'Decorative laminates (1) Pvt. Ltd 2010 (HC)', The High Court held that no remission under Section 23 of the Customs Act, 1962 can be allowed for warehoused goods if they are lost or destroyed in the warehouse after the expiry of warehousing period. The High Court further held that where the goods are not cleared within the permissible warehousing period, such goods are deemed to be improperly removed in terms of section 72(1)(b) of the Customs Act, 1962. Hence in the present case, action taken by the department is correct and in line with the Customs Law.