Customs duty rate follows the bill of entry date, not clearance date, under Section 15(1)(a).

For customs duty under Section 15(1)(a) of the Customs Act, 1962, the relevant date for determining the applicable rate is the date of presentation of the bill of entry, not the later date of clearance. On that basis, the bill of entry presented on 6-7-2000 remained chargeable at the rate in force on that date and could not be subjected to the later enhanced rate, while the bill of entry presented on 2-8-2000 was liable to duty at the revised rate then in force. The differential duty demand was therefore sustainable only for the later bill of entry, and the earlier demand was set aside.

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Issues: Whether the applicable rate of customs duty on areca nuts was to be determined with reference to the date of presentation of the bill of entry or the date of clearance, and whether the differential duty demanded on the two bills of entry was sustainable.

Analysis: Section 15(1)(a) of the Customs Act, 1962 fixes the rate of duty with reference to the relevant date for levy. On the facts, the bill of entry presented on 6-7-2000 could not attract the enhanced duty rate that came into force later, because the date of presentation of the bill of entry was the material date for duty purposes. The bill of entry presented on 2-8-2000, being after the change in rate, was liable to differential duty at the revised rate.

Conclusion: The demand of differential duty was sustained only in respect of the bill of entry dated 2-8-2000, and the demand raised on the bill of entry dated 6-7-2000 was set aside.

Final Conclusion: The appeal succeeded in part, with the duty demand reduced to the confirmed amount relatable only to the later bill of entry.

Ratio Decidendi: For customs valuation under Section 15(1)(a) of the Customs Act, 1962, the rate of duty is determined by the legally relevant date of presentation of the bill of entry, not by the subsequent date of clearance.

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