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TMI Blog2025 (1) TMI 358X X X X Extracts X X X X X X X X Extracts X X X X ..... of documents. It facilitates two way interactions between the Indian customs and the trading community on a host of services], through their Customs Broker. However, ICEGATE did not admit the Bills and the status of all Ex-bond Bills of Entry filed were shown as NEGATIVE ACKNOWLEDGEMENT WITH ERROR CODE:139. Since it was late in the evening, the respondent took up the matter with the Customs Broker. They were informed that due to non-updation of bond details in the ICES (the 'Indian Customs EDI System'), the Ex-bond Bills of Entry filed on 26.8.2018 were not accepted and showed a negative acknowledgment. In the meanwhile, vide Notification No. 67/2018 dated 26.9.2018, the duty payable structure on the split air-conditioners were enhanced from 10% of BCD to 20% BCD with effect from 27.10.2018. The respondent was required to pay duty on the imported split air conditioners under the above structure. The extra duty under the new notification worked out to Rs.42,89,795/-. On a bonafide belief, based on the communication of the Assistant Commissioner (Bonds) dated 26.11.2018, that the excess duty would be refunded by the refund section, the respondent discharged the excess duty liability ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ative acknowledgment was received. This was purely a system related fault and they cannot be held liable to pay extra duty on this account 2) As per Section 15(1)(b) of the Act, 1962 the respondent is liable to pay duty at the rate on the date on which the bill of entry is presented for home consumption and not at the rate on any other date as decided by Commissioner Appeals. 3) On verification with the department, it was ascertained that the error was on account of the fact that bond details were not updated by the bond section. 4) As per the Warehousing Regulations 2016, 11(4) and Board Circular 25/2016 08/06/2016, -para 2 and 3, it is the responsibility of the warehouse licensee for mandatory maintenance of records in digital form and not that of the importer. 5) Revenue cannot take a ground which is contrary to the circular. 6) The Ld. Counsel relied on the following judgments; a) Madras High Court decision M/s Lakshmi Dall Mill reported in 2018 TIOL 185 HE MAD EUS b) Madras High Court decision in the case of M/s Rangsuganth Manufacturing Pvt Ltd Vs Asst Commissioner of Customs Chennai reported in 2022 (2) TMI 212 MAD HC CUS c) Ratan Wire Melting reported in 200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , on the date of payment of duty: Provided that if a bill of entry has been presented before the date of entry inwards of the vessel or the arrival of the aircraft or the vehicle by which the goods are imported, the bill of entry shall be deemed to have been presented on the date of such entry inwards or the arrival, as the case may be (2) The provisions of this section shall not apply to baggage and goods imported by post." Hence as per section 15(1)(b), which is applicable to this case, the rate of duty and tariff valuation, if any, applicable to any imported goods, shall be the rate and valuation in force, in the case of goods cleared from a warehouse under section 68, on the date on which a bill of entry for home consumption in respect of such goods is presented under that section. 8. The presentation of an electronic bill of entry is covered by the Bill of Entry (Electronic Integrated Declaration and paperless) Regulation 2018. Regulation 4(2) provides that the Bill of Entry shall be deemed to have been filed and self-assessment completed when after entry of the electronic integrated declaration, a Bill of Entry number is generated by the Indian Customs Electronic Data I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion are made by the CHA/Importer after warehousing the goods or when they want to pay the duty and clear the cargo. Every transaction regarding bonded cargo is also recorded/uploaded separately in a software called "Bond Warehouse Module as per the requirement of Circular No. 25/2016-Customs but the Bond Warehouse Module and the ICES have not been linked so far. In this scenario, the details regarding date of warehousing etc. will be uploaded in the module by the Bonds section on the one hand and also by the warehouse licensee on the other. The updation of the warehousing date needs to be done manually separately in the ICES by the Bonds Superintendents on information/request from the importer/CHA. Until ICES and the Bonded Module are linked, this is required to be done in this way only. It is not practice or feasible for the Bond section to update the warehousing date in the ICES as a matter of daily routine. The Trading public knows this procedure very well which has been in vogue for a long time. 12. The appellant has drawn attention to Warehouse (Custody and Handling of Goods) Regulations, 2016 provision 11(4) along with para 2 and 3 of Board's Circular No 25/2016-Customs iss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... grated Declaration and the supporting documents. The rate of Basic Customs Duty as applicable on 05.07.2019 would, therefore, be applicable and not the Basic Customs Duty as applicable on 20.07.2019, on which date the respondent had resubmitted the Bills of Entry with documents in view of the instructions issued by the Department. There is, therefore, no error in the order passed by the Commissioner (Appeals) requiring the Department to re-assess the three Bills of Entry with respect to the rate of Basic Customs Duty applicable on 05.07.2019. (emphasis added) 14. It is also noted that the board vide its Instruction No.12/2017-Customs dated 31.08.2017, on the subject 'Clarification on difficulties related to recent amendments in Customs Act, 1962 - reg.', held as under; "3. Board has examined the issue and accordingly following clarification is given. Board is of the view that importer should not be penalised for delay happening due to any system related fault. In this regard section 46 of the Customs Act 1962 provides that payment of charges for late presentation of the Bill of Entry is subject to existence of sufficient cause to the satisfaction of proper officer." (emphasis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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