Bulk liquid cargo duty must be assessed on shore tank quantity, with refund available for excess ullage-based collection.

For bulk liquid cargo discharged through pipelines into shore tanks, customs duty is to be assessed on the quantity actually received in the shore tank, not on the higher quantity shown in the ship's ullage survey. CESTAT Bangalore applied the settled principle and noted that the Board circular supported shore-tank-based assessment where cargo is discharged into storage tanks. Assessment finalised solely on ship ullage was therefore incorrect, and refund was admissible for duty collected on the excess ullage quantity.

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Issues: Whether customs duty on bulk liquid cargo discharged through pipelines into shore tanks is to be assessed on the quantity shown in the ship's ullage survey report or on the quantity actually received in the shore tank, and whether refund is admissible for duty collected on the higher ullage quantity.

Analysis: The dispute concerned imported bulk liquid cargo for which duty had been collected on the ship's ullage quantity, though the quantity actually received in the shore tanks was lower. The Tribunal applied the settled principle that, for bulk liquid cargo discharged into storage tanks, assessment must be based on the quantity actually received in the shore tank. It noted that the Board circular also supported assessment on shore tank receipt where the cargo is discharged into shore tanks, and therefore assessment finalized solely on ship ullage was not correct.

Conclusion: Assessment had to be made on the shore tank quantity, and the assessee was entitled to refund of the duty collected on the excess ullage quantity.

Ratio Decidendi: In the case of bulk liquid cargo discharged into shore tanks, customs duty is leviable on the quantity actually received in the shore tank, not on the higher quantity shown by the ship's ullage survey.

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