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Unit 11: Warehousing and Duty Drawback

demand and the owner of the goods shall forthwith pay, the full amount of duty chargeable Notes
thereon, together with all rent, penalties, interest and other charges payable on account of the
goods.
Procedure on failure to pay duty, etc. - (1) If any owner fails to pay any sum demanded under
rule 160, the proper officer shall forthwith cause the goods (if any) in the warehouse or, as the
case may be, such portion thereof, on account of which the amount is due, to be detained with a
view to the recovery of the demand, and if the demand be not discharged within ten days from
the date of such detention due notice thereof being given to the owner (if his address be known)
the goods so detained may be sold by public auction duly advertised in the Official Gazette, or
in such other manner as the Central Board of Excise and Customs may in any particular case
direct.

(2) The sum demanded under rule 160 and the expenses (if any) incurred on account of the public
auction of the goods shall be defrayed from the proceeds of the sale and the surplus proceeds (if
any) shall be paid to the owner of the goods:
Provided that application for the same shall be made within one year from the sale, or that
sufficient cause be shown for not making the application within that period.

Noting removal of goods. - When any goods are taken out of any warehouse, the proper officer
shall cause the fact to be noted in the warehouse register.
Every note so made shall specify the quantity and description of the goods, the marks and
numbers of the packages, the name of the person removing them, the number and date of the
application for clearance and the amount of duty paid (if any).

Warrant to be given when goods are lodged in a public warehouse. - The owner of goods, which
are to be deposited in a public warehouse shall, after they have been duly assessed to duty as
provided in rule 141, deliver the goods to the keeper of the warehouse and the latter shall, after
comparing the packages with the description entered in the warehouse register, grant him a
warrant in the proper Form.
Owner of goods to pay such dues when demanded. - The owner of goods, who has deposited the
goods in a public warehouse, shall,—

(a) pay, on demand, all duties, rent and charges claimable on account of such goods under the Act
or these rules, together with interest on the same from the date of demand, at such rate not
exceeding six per cent per annum as may for the time being be fixed by the Central Board of
Excise and Customs;
(b) discharge all penalties imposed for contravention of the provisions of the Act or these rules
in respect of such goods.
Access of owner to warehoused goods.- (1) Any owner of goods lodged in a public warehouse
shall, at any time within the hours of business, have access to his goods in the presence of an
officer and an officer shall, upon application for the purpose being made in writing to the proper
officer be deputed to accompany such owner.
(2) When an officer is specially employed to accompany such owner a sum sufficient to meet the
expense thereby incurred shall, if the Commissioner so require, be paid by such owner to the
proper officer, and such sum shall, if the Commissioner so directs, be paid in advance.
Keeper of public warehouse solely responsible for safety of goods stored therein.- The keeper of
a public warehouse shall be alone responsible to the proprietor of any goods warehoused
therein for the safety of the goods.

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