2023 (11) TMI 70 - AT - Customs

Refund of customs duty which was paid at the time of provisional clearance of subject goods - On finalization of the bills of entry, it is found that customs duty payable was less than the duty which was provisionally assessed and deposited by the appellant - HELD THAT - The matter is no longer res-integra as the Hon ble Supreme Court in the case of MANGALORE REFINERY AND PETROCHEMICALS LTD. VERSUS COMMISSIONER OF CUSTOMS, MANGALORE 2015 (9) TMI 245 - SUPREME COURT has already decided the matter where it was 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. Consequential action, in accordance with this declaration of law, be carried out by the customs authorities in accordance with law. The impugned order-in-appeal is legally tenable and the same is correct and legal - Appeal dismissed.

Summary

Issues involved:
The issues involved in the judgment include provisional assessment of customs duty on imported crude petroleum oil, eligibility for refund of customs duty, proper assessment based on quantities received at the discharge port, reliance on Supreme Court judgments and circulars for assessment of customs duty.

Provisional Assessment of Customs Duty:
The appellant imported consignment of crude petroleum oil and filed 12 bills of entry for clearance, which were provisionally assessed. The final assessment by the proper officer revealed a discrepancy in the customs duty paid provisionally and the actual duty payable, leading to the appellant's eligibility for a refund of the excess duty paid.

Appeal Against Refund Order:
The department appealed against the refund sanctioned to the appellant, leading to denovo proceedings. The Deputy Commissioner of Customs, after detailed examination, sanctioned a refund claim to the appellant under the Customs Act, 1962. However, a differential amount and short payment of duty were also identified, leading to a separate order issued against the claimant.

Commissioner (Appeals) Decision:
The Commissioner (Appeals) upheld the order-in-original, stating that the final assessment of bills of entry was erroneous as it did not consider the quantities received at the discharge port for calculating customs duty. The Commissioner relied on Supreme Court judgments and circulars to determine the correct assessment method based on the quantities of imported goods actually received in India.

Appellate Tribunal Decision:
The Appellate Tribunal considered the Supreme Court decision in the case of M/s. Mangalore Refinery and Petrochemicals Limited, which clarified that the quantity of goods received at the discharge port should be the basis for customs duty payment. In line with this precedent, the Tribunal found the impugned order-in-appeal legally tenable and dismissed the appellant's appeal.

Conclusion:
The Appellate Tribunal, citing the Supreme Court precedent, upheld the correct assessment method based on quantities received at the discharge port for payment of customs duty on imported crude petroleum oil. The appeal was deemed without merit and dismissed accordingly.