2018 (2) TMI 955 - AT - Customs

Short levy of Customs Duty - only ground on which Revenue has challenged the impugned order is that certified shore tank receipt certificates were not available on record - Held that - The customs duty is to be charged only on the basis of the actual quantity of crude receipt in the shore tank - After a perusal of the appeal records, it is found that the original authority has already perused copies of the respective shore tank receipt certificates and has finalised the provisional assessments - appeal dismissed - decided against Revenue.

Summary

Issues:
- Dispute regarding provisional assessment of customs duty based on Bill of Lading quantity versus shore tank receipt quantity.
- Applicability of apex court decision in determining customs duty on actual quantity received in the shore tank.
- Availability of certified shore tank receipt certificates on record.

Analysis:
The appeal was filed against an Order-in-Appeal regarding the finalization of provisional assessment of customs duty for imported crude oil. The dispute arose when the original authority confirmed short levy of customs duty based on Bill of Lading quantity, leading to the respondent appealing to the Commissioner(Appeals). The Commissioner(Appeals) ordered that import quantities should be ascertained based on shore tank receipts, following the precedent set by the Hon'ble Supreme Court in a previous case. The Revenue challenged this order on the grounds of the absence of certified shore tank receipt certificates in the record.

During the hearing, the Authorized Representative for the Revenue argued that finalizing the assessment based on the actual quantities received in the shore tank requires certified shore tank receipt reports, which were not present in the record. On the other hand, the respondent's counsel contended that copies of the shore tank certificates were available and had been submitted to the Tribunal in the Cross-objections.

After considering the arguments and reviewing the records, the Tribunal noted that the law regarding the determination of customs duty for crude oil imports had been settled by the apex court. It was established that customs duty should be levied based on the actual quantity of crude oil received in the shore tank. The original authority had already examined copies of the shore tank receipt certificates and finalized the provisional assessments accordingly. The Commissioner(Appeals) also made a decision in line with this principle. Consequently, the Tribunal found no reason to interfere with the impugned order, which was upheld, leading to the dismissal of the Revenue's appeal. The early hearing application and Cross-objections were also disposed of during the proceedings.