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Issues involved:
1. Interpretation of the incidence of customs duty concerning the import of goods into India. 2. Applicability of principles under Sections 116 and 12 of the Customs Act for quantification of duty. 3. Determination of the method for quantification of duty under Section 12 of the Customs Act based on ullage survey report or shore tank measurement. 4. Comparison of accuracy between determining quantity based on shore tank measurement and ullage survey for quantification of duty. Analysis: Issue 1: The Tribunal initially held that the incidence of customs duty arises as goods enter the territorial waters of India, not upon offloading on land. However, subsequent judgments by the Hon'ble Supreme Court clarified that import is completed when goods cross into territorial waters and become part of the mass within the country, reaching the taxable event when they reach Customs barriers. The Tribunal acknowledged the change in judicial pronouncements and found merit in the Reference application. Issue 2: The Senior Advocate argued that the Tribunal's reliance on the Bombay High Court's decision was overruled by the Supreme Court's judgments. The Apex Court clarified that the completion of import occurs when goods cross the Customs barrier, rejecting the earlier interpretation. The Tribunal agreed with the Senior Advocate's submissions, highlighting the need to refer the questions of law to the High Court due to the changed legal landscape. Issue 3: Regarding the method for quantifying duty under Section 12 of the Customs Act, the Tribunal considered the Senior Advocate's argument that the issue primarily concerned the quantity imported, not the valuation or rate of duty. The Tribunal emphasized that the final order focused on determining the correct quantity imported and the method for ascertaining it, rather than valuation, which would be addressed during assessment. Issue 4: The Duty Officer emphasized that the quantity of imported goods influences the assessable value due to the ad valorem basis of duty. However, the Tribunal clarified that the issue at hand primarily revolved around determining the quantity imported and the appropriate method for calculation. Valuation concerns would be addressed separately during assessment, not within the scope of the current issue. In conclusion, the Tribunal recognized the need to refer the questions of law to the High Court of Kerala due to the changed legal interpretations post the issuance of the final order. The Tribunal directed the Registry to forward the necessary documents for the High Court's consideration under Section 130 of the Customs Act, 1962.
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