Customs duty on bulk liquid cargo applies only to the quantity actually received, not the invoice quantity.

Customs duty on bulk liquid cargo is chargeable only on the quantity actually received into India, not on the invoice quantity shown in the Bills of Entry. The governing principle is that import duty and its valuation must be confined to goods actually imported at the time and place of importation. Section 14 of the Customs Act and the Customs Valuation Rules do not permit duty on quantities not received, and Sections 13 and 23 support non-levy where goods are lost, pilfered, or destroyed before import is complete. The assessee therefore succeeds.

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Issues: Whether customs duty on bulk liquid cargo is chargeable on the invoice quantity shown in the Bills of Entry or on the quantity actually received as reflected in the out turn report.

Analysis: The governing principle is that import duty is leviable only on imported goods and the measure of duty must reflect the quantity of goods at the time and place of importation. The valuation scheme under Section 14 of the Customs Act, together with the Customs Valuation Rules, does not permit duty to be computed on goods not actually received in India. Sections 13 and 23 also show that where goods are lost, pilfered, or destroyed before completion of import, duty is not payable on that quantity. The distinction between specific rate duty and ad valorem duty does not alter this statutory scheme.

Conclusion: Customs duty is payable only on the quantity actually received into the shore tank, not on the invoice quantity stated in the Bills of Entry. The assessee succeeds.

Ratio Decidendi: In customs valuation, the charge and measure of duty must be confined to the quantity of goods actually imported and received in India at the time and place of importation.

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