1998 (2) TMI 131 - SC - Customs

What is the date for determination of the rate of duty in respect of the goods imported by the appellant? Held that - In the present case the date of entry inwards of the vessel as well as the date of presentation of the Bills of Entry were prior to March 1, 1987 when the duty payable on the goods was reduced. The Tribunal has, therefore, rightly held that duty was payable at 80%, the rate that was prevalent prior to the Notification dated March 1, 1987 and the benefit of the notification dated March 1, 1987, could not be extended to the appellant. In the circumstances, we do not find any merit in these appeals and the same are accordingly dismissed.

Summary

Issues:
1. Determination of the rate of duty for imported goods.
2. Applicability of reduced duty notification.
3. Interpretation of Sections 54, 55, and 15 of the Customs Act, 1962.

Issue 1: Determination of the rate of duty for imported goods

The case involved the appellant importing goods and presenting Bills of Entry on February 26, 1987, seeking a reduced duty rate introduced on March 1, 1987. The Additional Collector of Customs held that the duty rate prevailing on February 26, 1987, i.e., 80%, applied. The Collector of Customs (Appeals) later allowed a refund for goods arriving on March 11, 1987, at the reduced rate. The Tribunal affirmed the duty rate of 80% for goods arriving before March 1, 1987, as the Bills of Entry and entry inwards were prior to that date. The Tribunal's decision was based on Section 15(1)(a) of the Customs Act, which determines the duty rate based on the date of presenting the Bills of Entry.

Issue 2: Applicability of reduced duty notification

The appellant claimed the benefit of the reduced duty rate under a notification dated March 1, 1987, for goods arriving on March 8, 1987. The Assistant Collector rejected the refund application, stating the duty rate was 80% on February 26, 1987. However, the Collector of Customs (Appeals) allowed the refund, citing Sections 15 and 55 of the Act, stating the duty rate should be 20%. The Tribunal overturned this decision, ruling that the duty rate was correctly applied at 80% due to the Bills of Entry and entry inwards being before March 1, 1987.

Issue 3: Interpretation of Sections 54, 55, and 15 of the Customs Act, 1962

The appellant argued that goods intended for transhipment to ICD, New Delhi, should benefit from the reduced duty rate under the March 1, 1987 notification. However, the Tribunal held that Sections 54 and 55, governing transhipment, do not impact the determination of the duty rate under Section 15. The Tribunal clarified that the date of entry inwards of the vessel, as per Section 31, is crucial in determining the duty rate, irrespective of the goods' transhipment status. Therefore, the Tribunal dismissed the appeals, emphasizing that the duty rate of 80% applied to goods imported before March 1, 1987.

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