1986 (9) TMI 256 - AT - Customs

Summary

Issues:
1. Interpretation of Section 16 of the Customs Act, 1962 regarding the date of presentation of a shipping bill.
2. Determination of the relevant date for calculating duty on exported goods.
3. Validity of an amendment to a shipping bill and its impact on duty calculation.

Analysis:

The judgment by the Appellate Tribunal CEGAT, New Delhi involved a dispute regarding the duty paid on the export of Coffee by M/s. T. Gulam Mahamood Assadi and Sons. The initial shipping bill was presented on 1-9-1981 for export via S.S. Amado but was later amended on 2-9-1981 to substitute S.S. Macol Ace. Duty was paid on 5-9-1981, and entry outwards for S.S. Macol Ace was granted on 14-9-1981. A refund claim was made due to the abolition of export duty on coffee on 10-9-1981, which was initially rejected by the Assistant Collector but allowed on appeal by the Appellate Collector.

The key issue revolved around the interpretation of Section 16 of the Customs Act, 1962. The Assistant Collector based the duty calculation on the date of filing the shipping bill, i.e., 1-9-1981, as the relevant date for determining the duty rate. However, the Appellate Collector disagreed, stating that under Section 16, the date of grant of entry outwards should be considered as the date of presentation of the shipping bill. In this case, since the entry outwards was granted on 14-9-1981, the duty should be calculated based on the duty abolition on that date.

In the appeal, the Collector argued that Section 16(1) did not cover cases where the vessel's name in the shipping bill was amended. The Collector referred to a Supreme Court decision where it was clarified that Section 16 only provided for one fictional date - the date of grant of entry outwards. The Supreme Court rejected the contention that the date of arrival of the ship should be considered. Applying the Supreme Court's decision, the Tribunal held that the duty should be determined based on the date of entry outwards for S.S. Macol Ace, i.e., 14-9-1981, when export duty on coffee was abolished.

Ultimately, the Tribunal dismissed the appeal, upholding the Appellate Collector's decision. They concluded that the duty calculation should be based on the date of entry outwards for the vessel through which the goods were exported, in this case, S.S. Macol Ace, as per the proviso to Section 16(1) of the Customs Act.