Export duty follows the shipping bill actually used, and a later exemption notification can defeat a prior duty demand.

Customs duty on exported goods was determined by reference to the shipping bill actually used for export under the Sea Customs Act, 1878. Where the original shipping bills were withdrawn and the goods were exported under fresh shipping bills filed after an exemption notification came into force, the later bills governed the levy. The customs authorities could not base a duty demand on the earlier, unacted-upon shipping bills. On that footing, the duty claim failed because the consignments were exported under the fresh shipping bills and were covered by the exemption.

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Issues: Whether customs duty on the exported manganese ore was payable with reference to the original shipping bills presented before the exemption notification, or with reference to the fresh shipping bills presented after the notification, and whether the suit for recovery of duty was maintainable on that basis.

Analysis: Under the Sea Customs Act, 1878, the applicable rate of duty for exported goods is determined when the shipping bill is delivered, and the charging point for export duty is linked to the shipment under the relevant shipping bill. The original shipping bills were not acted upon for the actual export; the goods were exported under the fresh shipping bills presented after the exemption notification had come into force. Once the export took place under the later shipping bills, the exemption notification governed the levy, and the customs authorities could not sustain a demand for duty on the footing of the earlier withdrawn bills.

Conclusion: The claim for duty failed, and the respondents were not liable to pay customs duty on the consignments exported under the fresh shipping bills.

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