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A200 EXCISE LAW TIMES [ Vol. 372

(c) It is made clear that this direction is issued subject to the outcome of
the revision petition filed by the Government. The Hon’ble Court is-
sued a direction to get the case decided under Revision within 30
days.
Since the order in W.M.P. No. 5088 decided on 2-3-2017 in W.P. No. 32340 is not
perceptible, it is not known whether the earlier order in W.M.P. No. 28052 in
W.P. No. 32340 of 2016 is modified by setting aside the Redemption fine and di-
rection to pay duty. There appears to be no reason to believe that the direction to
pay the duty on the gold confiscated and ordered to be released on payment of
fine that may be determined by the respondents ought to have modified since the
gold is to be consumed in India.
Further the Apex Court in Union of India and Ors. v. M/s. Associated Con-
tainer Terminal Ltd. [2020-TIOL-52-SC-CUS-LB] held that the value of sale pro-
ceeds of goods imported when sold by Customs authorities should be the value
for determining duty. The Apex Court disposed of the case with directions to
ascertain the customs duty keeping in mind the dispensation indicated in the
enabling provisions of the Customs Act, 1962 and Chapter 21 of C.B.E. & C.
Manual read with Circular 71/2001-Cus., dated 28th November, 2011 and adjust
the same as per the priority specified in Section 150(2) of the Customs Act, 1962.
Circular No. 71/2001-Cus., dated 28-11-2001
Auction of unclaimed/uncleared goods at Customs Houses -
Determination of duty - Clarifications
F. No. 446/17/2001-Cus. IV
Government of India
Ministry of Finance
(Department of Revenue)
Central Board of Excise & Customs, New Delhi

Subject : Payment of Customs duty by custodians in respect of auctioned goods - Reg.
A reference was received from the Container Corporation of India
(CONCOR) stating that there is a divergence of practice in Custom Houses
with regard to apportionment of sale proceeds from disposal/sale of un-
claimed/uncleared goods under section 150 of the Customs Act, 1962. It was
reported that some Custom Houses determine the Customs duty payable on
auctioned goods after deducting the sales expenses from the sale proceeds of
the goods whereas other Custom Houses are determining duty on the basis of
sale proceeds without allowing any deduction.
The matter has been examined.
2. It is clarified that -
(a) the Customs duty shall be determined by backward calculation con-
sidering the sale proceeds of unclaimed/uncleared goods as the cum-
duty price. For calculation of duty, total sale proceeds without allow-
ing any deduction towards sales expenses or any other charge is to be
taken as cum-duty price.
(b) After determination of the Customs duty, sale proceeds of un-
claimed/uncleared goods is to be appropriated in the manner as pro-
vided in section 150(2) of the Customs Act, 1962.
3. These instructions may be brought to the notice of all concerned by
way of issuance of suitable Public Notice/Standing Order.
4. Difficulties, if any, in implementation of these instructions, may be
brought to the notice of the Board. Kindly acknowledge receipt of this
Circular.
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