2004 (11) TMI 397 - AT - Customs

Summary

Issues: Determination of rate of duty for goods not warehoused under Section 68 of the Customs Act.

The case involved a dispute regarding the determination of the rate of duty for goods that were not warehoused under Section 68 of the Customs Act. The Revenue contended that the duty should be calculated based on the date when the goods were cleared from custodianship, not when the Bill of Entry was presented. The Revenue relied on a Supreme Court judgment in the case of Kesoram Rayon v. CC, Calcutta. However, the Respondents argued that the Kesoram Rayon case was different as it involved goods bonded in a warehouse under Section 68. The Tribunal found that the goods in question had not been warehoused under Section 68 but had been handed over to the appellants as custodian under Section 48 of the Customs Act. Therefore, the Commissioner (Appeals)'s decision to apply Section 15(1)(a) for determining the rate of duty was deemed correct. The relevant date for determining the rate of duty and tariff valuation was established as the date when the Bill of Entry was presented for home consumption. The Tribunal also noted that a High Court order cited by the Revenue did not impact the case, and the Supreme Court judgment in the Kesoram Rayon case was not applicable. Consequently, the appeal by the Revenue was dismissed, as there was no merit in their argument.

In conclusion, the Tribunal upheld the Commissioner (Appeals)'s decision to calculate the rate of duty for goods not warehoused under Section 68 of the Customs Act based on the date when the Bill of Entry was presented for home consumption. The Tribunal distinguished the case from the Kesoram Rayon judgment, emphasizing that the goods in question were not warehoused under Section 68 but were in the custody of the appellants under Section 48. Therefore, the Tribunal rejected the Revenue's appeal, as the Supreme Court judgment cited was deemed inapplicable to the circumstances of the case.