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Issues:
1. Substitution of bill of entry for home consumption for a bill of entry for warehousing. 2. Interpretation of Section 15 of the Customs Act regarding duty rates. 3. Application of Section 46(5) of the Act in permitting substitution of bill of entry. 4. Determining if revenue interests are prejudicially affected by allowing substitution. Analysis: The case involves a private limited company that imported goods and initially filed a bill of entry for home consumption but later sought to substitute it for warehousing due to a change in duty rates. The Assistant Collector denied the substitution request, leading to the challenge in court. The petitioners argued that the goods were not actually stored in the warehouse, but the court held that mere filing for warehousing does not automatically allow substitution for home consumption. The petitioners' motive was to benefit from the lower duty rates applicable earlier. Section 15 of the Customs Act states that the duty rate for goods entered for home consumption is based on the bill of entry presented. The court emphasized that the duty rate for goods cleared from a warehouse is determined upon removal from the warehouse. Regarding the application of Section 46(5) of the Act, the court noted that the officer can permit substitution if satisfied that revenue interests are not prejudicially affected. The Department's counsel argued that allowing substitution in this case would adversely impact revenue interests by enabling the petitioners to clear goods at a lower duty rate. The court agreed with this argument, finding no infirmity in the Assistant Collector's decision to deny substitution. Consequently, the petition was dismissed, and costs were awarded to the Department. Since the petitioners cleared the goods under an interim court order with a bank guarantee, the Department was permitted to enforce the guarantee to recover the duty owed.
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