2017 (3) TMI 1067 - AT - Customs

Tribunal upholds dip measurement recordings for imported liquid cargo, dismissing appellants' appeals. Commissioner's view prevails.

The Tribunal dismissed all three appeals filed by the appellants, upholding the impugned orders based on dip measurement recordings for imported liquid ... Timing of dip measurement for bulk liquid cargo - shore tank dip measurement - finalisation of provisional assessment on shore tank quantity - measurement taken in presence of assesseeTiming of dip measurement for bulk liquid cargo - shore tank dip measurement - measurement taken in presence of assessee - finalisation of provisional assessment on shore tank quantity - Validity of provisional assessments finalised on the basis of dip measurement of imported bulk liquid cargo taken immediately after pumping into the shore tank. - HELD THAT: - The Tribunal held that there was no substance in the appellant's grievance that dip measurement should have been delayed for at least 48 hours to allow settling. The opinion relied upon by the appellant did not address the settling time asserted. The appellate authority's view - that the time for stabilization depends on the type of bulk liquid, pipeline length and other parameters - was accepted as reasonable. Further, the dip measurement was carried out in the presence of the appellant's representative and no objection was raised at that time. Once the goods had been cleared after import, it was not practically possible to take a fresh dip measurement of the same stock in the same tank. For these reasons the assessments, being based on the shore tank dip readings, were sustained.Provisional assessments confirmed; appeals dismissed and impugned orders sustained.Final Conclusion: The Tribunal dismissed the appeals and upheld the impugned assessment orders, holding that assessments based on shore tank dip measurements taken immediately after receipt of the liquid cargo (in the presence of the assessee's representative) were not vitiated by the timing of measurement. Issues Involved:Discrepancy in dip measurement of imported liquid cargo leading to assessment orders based on dip measurement recordings.Analysis:The case involved the appellant, engaged in importing bulk liquid cargo of vegetable oils for sale in the domestic market. The issue revolved around the measurement of imported soya bean oil through Kakinada Port and the manner of measurement. The Customs authorities took dip measurement of the entire cargo immediately upon receipt in the shore tank, directing the filing of Ex-Bond Bills of Entry based on this measurement. The appellant objected to this practice, claiming it did not yield accurate results as the measurement was taken before the oil had settled sufficiently in the tank. Assessment orders were passed based on dip measurement recordings, leading the appellant to approach the Tribunal for relief.The Tribunal referred to a similar case from Bangalore concerning the timing of measurement of quantity in liquid cargo imports. The appellant argued that dip measurement should not be done within 48 hours of receipt in the shore tank as the liquid needed time to settle, citing differences in practices at Kakinada Port and other ports. The Commissioner (AR) defended the impugned order, highlighting the absence of objections during the dip measurement by the appellant's representative.After considering the submissions, the Tribunal found no merit in the appellant's grievance. It noted that dip measurement of shore tank quantity was standard for assessment, dismissing the relevance of decisions cited by the appellant. The FOSFA opinion referenced by the appellant did not address the settling time of liquid cargo. The Tribunal found the appellate Commissioner's view more acceptable, emphasizing the importance of factors like the type of cargo and pipeline length in stabilization time. It was observed that the appellant did not dispute the dip measurement during the process, and taking fresh measurements after clearance was impractical. Consequently, the appeals were rejected as lacking merit, and the impugned orders were sustained.In conclusion, the Tribunal dismissed all three appeals filed by the appellants, upholding the impugned orders based on dip measurement recordings.