1983 (2) TMI 309 - AT - Customs

Summary

Issues:
- Appeal for refund of duty on short-landed Muriate of Potash
- Transfer of petition to Tribunal under Customs Act, 1962
- Rejection of refund claim by Assistant Collector and Appellate Collector
- Discrepancy in quantity cleared and quantity landed at New Mangalore Port
- Procedure followed for clearance of bulk cargo at the port
- Non-availability of cargo for clearance after landing but before order for home consumption
- Acceptance of certificate issued by Mangalore Port for refund

Analysis:

The appeal before the Appellate Tribunal CEGAT New Delhi involved a request for the refund of duty amounting to &8377; 12,417.55 on 91.235 MT of Muriate of Potash alleged to have been short-landed. The petition was initially filed before the Government of India against the rejection of the refund claim by the Appellate Collector of Customs, Madras, and was subsequently transferred to the Tribunal under Section 131-B of the Customs Act, 1962 to be heard as an appeal.

The petitioners sought the refund based on the discrepancy between the quantity of Muriate of Potash cleared and the quantity actually landed at New Mangalore Port. The Assistant Collector of Customs, Mangalore, rejected the claim, relying on an outturn statement from the Port Traffic Manager indicating full discharge of cargo. However, the Tribunal noted that the procedure followed at the port for clearance of bulk cargo raised concerns, as there were instances of partial clearance before the duty payment, contrary to the provisions of Section 47 of the Customs Act, 1962.

Considering the non-availability of the full cargo for clearance after landing but before the proper officer's clearance order, the Tribunal found merit in the importer's claim for refund if the goods cleared fell short of the quantity stated in the Bill of Entry. The Tribunal highlighted that the certificate issued by the Mangalore Port, a third party, attested to the discrepancy in the cleared quantity, supporting the importer's case for refund under Section 13 of the Customs Act, 1962.

In conclusion, the Tribunal allowed the appeal and ordered the refund of duty paid on the 91.235 MT of Muriate of Potash, emphasizing the importance of considering the actual quantity landed rather than relying solely on the quantity cleared for duty refund purposes.