Customs refund on bulk liquid cargo barred where assessment followed invoice value and shore outturn report could not override Board procedure.

Refund of customs duty on bulk liquid cargo was not maintainable where the importer had accepted assessment on invoice price or transaction value under the applicable Board circulars. The circular procedure required ad valorem assessment on that basis, irrespective of short tank measurement or shore outturn report, and duty having been paid accordingly, a refund claim founded on the shore outturn report was contrary to the prescribed process. The rejection of refund was therefore upheld.

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Issues: Whether refund of customs duty paid on bulk liquid cargo could be claimed on the basis of shore outturn report despite assessment being made on ad valorem basis under the applicable Board circulars.

Analysis: The appellant had agreed to follow the procedure prescribed by the Board under Circular No. 96/2002-Cus. dated 27-12-2002 read with Circular No. 6/2006 dated 12-1-2006. The relevant circular for bulk liquid cargo required assessment on invoice price, i.e. transaction value, where duty was leviable on ad valorem basis, irrespective of quantity ascertained by short tank measurement or any other manner. Since the goods were assessed and duty was paid on that basis, the refund claim founded on the shore outturn report was contrary to the prescribed procedure and was not maintainable.

Conclusion: The refund claim was rightly rejected and the impugned orders called for no interference.

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