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2023 (9) TMI 578 - AT - CustomsCalculation of duty at the time of finalization of final assessment - to be paid on the basis of invoice value and the quantity indicated on the bills of lading or the quantity received by the importer/ appellants in their warehouse/ shore tanks? - HELD THAT - The matter has been decided by the Hon ble Apex Court in the case of MANGALORE REFINERY AND PETROCHEMICALS LTD. VERSUS COMMISSIONER OF CUSTOMS MANGALORE 2015 (9) TMI 245 - SUPREME COURT wherein the Hon ble Supreme Court had held that the quantity of crude oil actually received into a shore tank in a port in India should be the basis for payment of customs duty. In view of the above decision of the Hon ble Apex Court it is held that actual oil quantity physically received into the shore tank should be taken as the basis for payment of duty at the time of ex-bond bills of entry. The impugned order-in-appeal is set aside - appeal allowed.
Issues involved:
The main issues in this case were: (i) determination of the quantity to be considered for charging Customs duty based on shore tank receipt quantity or quantity indicated on invoices and bills of lading, (ii) inclusion of actual freight and insurance amount in the value of goods, and (iii) levy of interest under Section 18(3) of the Customs Act, 1962. Summary: Issue 1: Quantity for Customs Duty Calculation The case involved the importation of consignments by a canalizing agency on behalf of multiple oil companies. The question was whether the shore tank receipt quantity or the quantity indicated on invoices and bills of lading should be considered for charging Customs duty. The Tribunal referred to a Supreme Court judgment which emphasized that the duty should be based on the actual quantity physically received into the shore tank. Consequently, the Tribunal held that the duty should be paid based on the actual oil quantity received into the shore tank at the time of ex-bond bills of entry. Issue 2: Inclusion of Freight and Insurance in Value Another issue was whether the actual freight and insurance amount should be included in the value of goods for Customs duty calculation. The Tribunal did not provide specific details on this issue in the summarized judgment. Issue 3: Levy of Interest Regarding the levy of interest under Section 18(3) of the Customs Act, 1962, the Adjudicating Authority had imposed interest on the duty finalized after the provisional assessment. However, the Commissioner (Appeals) held that Section 18(3) was inserted into the Act after the relevant import period, and thus, the interest was not applicable. The Commissioner (Appeals) supported this view with case law and set aside the interest levy. The Tribunal did not provide further details on this issue in the summarized judgment. Conclusion: Based on the Supreme Court's decision, the Tribunal set aside the order-in-appeal and allowed the appeals, determining that the duty should be paid based on the actual oil quantity physically received into the shore tank. The decision was pronounced in the open court on 12.09.2023.
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