2016 (1) TMI 1238 - AT - Customs

Refund claim - relevant date for discharge of duty - Whether the appellant was correct in claiming that the goods entered into territorial water in India and vessel was assigned a berth on 24.02.1999 hence it is the date of import of the goods or 01.03.1999, the date on which entry inwards made, as claimed by Revenue? Held that - This issue is no more res integra as the Apex Court in the case of Apar Pvt. Ltd. 1999 (7) TMI 69 - SUPREME COURT OF INDIA , has held that Duty has to be paid with reference to the relevant date as per Section 15 of the Customs Act. The goods were allowed to be discharged on 27.02.1999 customs duty came into force on such goods from midnight of 27/02/1999. It is also undisputed that Entry Inward of the goods was made in the records on 01.03.1999 for all practical purpose and noted that the goods have been imported into India - no question of refund arises. Appeal dismissed - decided in favor of Revenue.

Summary

Issues:
1. Interpretation of the date of import of goods for customs duty payment.

Analysis:
The appeal was against the rejection of a refund claim by the adjudicating authority and the first appellate authority. The appellant had filed a Bill of Entry for clearance of goods at a nil rate of duty, but subsequently, the tariff was amended, making the goods chargeable. The appellant claimed they should not have paid the duty as it was not payable on the date of filing the Bill of Entry. The main issue was whether the goods entered territorial waters on a specific date, making it the date of import, or on a later date as claimed by the Revenue.

The appellant argued that the goods entered territorial waters on a specific date, making it the date of import, citing relevant provisions of the Customs Act and a Full Bench decision of the Bombay High Court. The Revenue contended that the goods were imported on a later date, as per the records of the customs authorities. They also mentioned that the Full Bench decision had been set aside by the Supreme Court.

The Tribunal analyzed the submissions and referred to previous Supreme Court decisions to determine the relevant date for customs duty payment. The Tribunal noted that the goods were allowed to be discharged on a specific date, and the Entry Inward was made in the records on a later date. Referring to the Supreme Court decisions, the Tribunal concluded that the relevant date for customs duty payment is as per Section 15 of the Customs Act. As the issue was settled in favor of the Revenue, the Tribunal rejected the appeal and upheld the impugned order.

In conclusion, the Tribunal held that the date of import for customs duty payment is determined by Section 15 of the Customs Act, based on previous Supreme Court decisions. As the issue was settled in favor of the Revenue, the appeal was rejected, and the impugned order was upheld.