Home Case Index All Cases Customs Customs + HC Customs - 1982 (9) TMI HC This
Issues:
1. Determination of the taxable event for customs duty on imported goods. 2. Interpretation of the Customs Act provisions regarding the entry of goods into Indian territorial waters. 3. Assessment of customs duty based on the timing of the vessel's re-entry into Indian territorial waters. Analysis: 1. The petitioners argued that the taxable event for customs duty occurred when the vessel first entered Indian territorial waters on 27th February 1979, relying on Section 12 of the Customs Act, 1962. They contended that since there was a total exemption from duty at that time, no duty was payable even if the exemption was later withdrawn. The petitioners emphasized that under the Customs Act, goods become liable to duty upon entry into Indian territorial waters, subject to specific exceptions. 2. The respondents, however, asserted that the taxable event occurred on 6th March 1979 when the vessel re-entered Indian territorial waters and discharged its cargo. They argued that the earlier entry of the vessel into Indian waters was irrelevant, and the goods were not liable to duty until the vessel re-entered on 6th March 1979. The respondents highlighted that the interpretation proposed by the petitioners would lead to multiple importations and duty payments, which did not align with the Customs Act provisions. 3. The court examined the definitions of "import" and "imported goods" under the Customs Act, clarifying that import refers to bringing goods into Indian territorial waters from outside India. The court emphasized that once goods are cleared for home consumption, they cease to be imported goods. Section 12 of the Act specifies that customs duties are leviable on goods imported into India at rates determined by the Customs Tariff Act. 4. The court referred to previous judgments, including the Sylvania case, which established that the chargeability of customs duty arises when goods are imported into Indian territorial waters. The court affirmed that the rate of duty is based on the date of presenting the bill of entry for imported goods. In this case, the court concluded that the goods were imported into India on 27th February 1979, exported when the vessel left Indian waters, and reimported on 6th March 1979, making them liable to customs duty upon re-entry. 5. Ultimately, the court upheld the assessment of customs duty by the respondents on 7th March 1979, considering the goods as imported on 6th March 1979 when the vessel re-entered Indian territorial waters. The court dismissed the petitions challenging the assessment orders, emphasizing that the entry on 6th March 1979 was the relevant event for determining the chargeability of customs duty on the goods.
|