JUDGMENT

Bharucha, J.-This is an appeal against an order of the Customs, Excise & Gold (Control) Appellate Tribunal. It raises a question of some importance relating to the rate at which Customs duty is to be levied on goods that remain in a bonded warehouse beyond the permitted period.

2. The appellants imported and, on 25th May, 1984, filed a bill of entry for 4832 bales of rayon grade wood pulp for warehousing. The 4832 were warehoused on 16th June, 1984, in a private bonded warehouse of the appellants. Of these, 4000 were cleared and we are concerned only with the remaining 832 bales (now referred to as the said bales ). The period of three months for which the said bales were warehoused under the provisions of Section 61(1)(b) of the Customs Act, 1962 (hereinafter referred to as the Act ) came to an end on 15th September, 1984. On 8th May, 1985, the Assistant Collector of Customs issued to the appellants a demand notice under Section 72(1) of the Act. It recorded that the said bales remained in the bonded warehouse although the period of warehousing had not been extended beyond 15th September, 1984. The appellants had, therefore, become liable to pay in respect of the said bal