The liability to pay interest under Section 59 arises from the date specified in the demand notice, and interest should be computed based on the amount of duty claimable and the prevailing rates of duty during the relevant periods.

( 1 ) IN these two writ appeals presented against the judgment of the learned judge partly allowing the writ petition presented by M/s. Bangalore wire rod mills, one by the petitioner and the other by union of india, the following two questions of law arise for consideration. 1. Whether the petitioner is liable to pay interest on the amount of customs duty claimable in respect of the goods left in the warehouse on 11-11-1982 for the period in excess of the period during which it was permitted to be left in the warehouse under Section 61 (1) of the act (as it stood prior to its amendment by act 11 of 1983) or from the date specified in the demand notice served on the petitioner in terms of Section 59 of the Act, or in terms of Section 61 (2) of the act inserted with effect from 13-5-1983, by amending act 11 of 1983.

( 2 ) WHET her the interest should be calculated on the basis of the amount of duty payable computed in accordance with the rate of duly which prevailed as on the date of deposit of goods in the warehouse or on the basis of the higher rate of duty which prevailed on the date from which the petitioner became liable to pay interest or on the basis of still higher rate of duty, which was prevailing as on the date of clearing the goods from the warehouse? 2. In order to bring forth the precise dispute between the parties, in the first instance it is necessary to make a brief survey of the relevant Provisions of the Customs Act under which the liability of the petitioner to pay interest to the respondent arose and the circumstances in which the liability arose. (i) the Customs Act, 1962, (for short 'the act') is an act to consolidate and amend the law relating to customs, enacted by the parliament. Section 12 is the charging section. The said Section provides that the duties of customs shall be levied at such rates as may be specified under the customs tariff Act, 1975 or any other law for the time being in force, on goods imported into or exported from india. In this case, we are concerned with the levy of customs duty on imported goods. Section 15 of the act prescribes the date for determination of rate of duty and tariff valuation of imported goods. It reads: "15. Date of determination of rate of duty and tariff valuation of imported goods: (1) the rate of duty and tariff valuation, if any, applicable to any imported goods, shall be the rate and valuation in force (a) in the case of goods entered for home consumption under Section 46, on the date on which a bill of entry in respect of such goods is presented under that section; (b) in the case of goods cleared from a warehouse under Section 68, on the date on which the goods are actually removed from the warehouse; (c) in the case of any other goods, on the date of payment of duty: provided that if a bill of entry has been presented before the date of entry inwards of the vessel by which the goods are imported, the bill of entry shall be deemed to have been presented on the date of such entry inwards". Section 17 provides for assessment of duty. Section 47 provides that importer of any goods, other than goods intended for transit or transhipment, shall make entry there of by presenting to the proper officer a bill of entry for home consumption or warehousing in the prescribed form. Section 49 provides for storage of imported goods in a warehouse pending clearance, in cases in which the goods cannot be cleared within a reasonable time. Section 59 of the act provides that an importer of any dutiable goods which have been entered for warehousing and assessed to duty under Section 17 or subject to the provisional assessment under Section 18, shall execute a bond binding himself in a sum equal to twice the amount of the duty assessed on such goods, to observe the Provisions of the act and the rules and regulations in respect of such goods. Section 59 (l) (b) makes it obligatory to the importer who has left his goods in a warehouse, to pay the amount of cus