2017 (5) TMI 1002 - AT - Customs

Refund claim - territorial jurisdiction - 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? - Held that - 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 - the 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 - appeal dismissed - decided against appellant.

Summary

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

Analysis:
The appeal in this case was against an order-in-appeal dated 28.09.2005 concerning the payment of customs duty on Rock Phosphate. The appellant filed a refund claim stating that no duty was payable at the time of filing the Bill of Entry on 19.02.1999, as the goods were chargeable to duty only after a subsequent amendment. The dispute revolved around whether the goods were imported on 24.02.1999 when the vessel arrived and was berthed, or on 01.03.1999 when the Entry Inward was recorded by the customs authorities. The appellant argued that the goods entered Indian territorial waters on 24.02.1999, while the Revenue contended that the goods were imported on 01.03.1999 when the customs duty was discharged.

The Full Bench of the Hon'ble High Court of Bombay had previously held that the relevant date for determining the taxability of imported goods is the date on which the bill of entry is presented or the goods are removed from the warehouse. The Supreme Court, in previous cases, clarified that the date of import for customs duty purposes is based on the presentation of the bill of entry or the actual removal of goods from the warehouse. The Apex Court emphasized that duty must be paid with reference to the relevant date as per Section 15 of the Customs Act.

Considering the settled legal position, the Tribunal found that the goods were allowed to be discharged on 27.02.1999 when the customs duty came into force. The Entry Inward was recorded on 01.03.1999, indicating the import of goods for all practical purposes. As per the Supreme Court's rulings, the relevant date for customs duty determination is the date of entry inwards or the actual removal of goods from the warehouse. Therefore, the Tribunal upheld the Revenue's position that the goods were imported on 01.03.1999, rejecting the appellant's claim for a refund.

In conclusion, the Tribunal held that the appeal lacked merit as the issue was settled in favor of the Revenue based on the legal principles established by the Supreme Court. The impugned order was upheld, and the appeal was rejected.