What are the circumstances in which goods are considered to be removed improperly from a warehouse under the Customs Act, 1962? What will be the reaction of the proper officer in such circumstances?

CS Professional · Advanced Tax Laws and Practice · PYQS · June 2021
What are the circumstances in which goods are considered to be removed improperly from a warehouse under the Customs Act, 1962? What will be the reaction of the proper officer in such circumstances?

Answer & Explanation:

Section 72 of the Customs Act, 1962 provides that the goods removed from a warehouse in the following circumstances shall be considered to be removed improperly: Where any warehoused goods are removed from a warehouse in contravention of Section 71; Where any 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 a warehouse; Where any goods in respect of which a bond has been executed under section 59 of the Customs Act, 1962 and which have not been cleared for home consumption or export or are not duly accounted for to the satisfaction of the proper officer. When goods are removed from a warehouse improperly, the proper officer may demand from the owner of such goods to pay full amount of duty on such goods together with interest, fine and penalties immediately. If any owner fails to pay any amount demanded for such improper removal, the proper officer may, without prejudice to any other remedy, cause to be detained and sold, after notice to the owner (any transfer of the goods notwithstanding) such sufficient portion of his goods, if any, in the warehouse, as the said officer may deem fit, to recover the duty, interest, fine and penalties, etc.

Topics: Customs Act, 1962

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