Customs duty on imported methanol must be assessed on actual receipt, not bill of lading quantity.

Customs duty on imported methanol is chargeable only on the quantity actually received at the port and taken into the shore tank, because duty attaches only to goods that are truly imported and have become part of the mass of goods in India. The bill of lading or invoice quantity cannot override the quantity physically received for assessment. The same rule applies whether duty is specific or ad valorem, and the provisions on loss, pilferage, warehousing, clearance for home consumption, and valuation do not support charging duty on goods never received.

---

---

Issues: Whether customs duty on imported methanol was payable on the quantity mentioned in the bills of lading and invoices or on the quantity actually received at the port and taken into shore tank.

Analysis: The controlling principle is that customs duty is leviable only on imported goods, and importation is complete only when the goods are brought into India and become part of the mass of goods in the country. The measure of duty under the Customs Act is linked to the goods actually imported at the time and place of importation, and sections dealing with loss, pilferage, warehousing, clearance for home consumption and valuation do not permit duty to be charged on quantity never received. The same rule applies whether the duty is specific or ad valorem, and the bill of lading quantity cannot displace the actual quantity received for assessment.

Conclusion: Customs duty was payable only on the quantity actually received into the shore tank at the port, not on the bill of lading quantity.

---