1986 (9) TMI 89 - HC - Customs

Court affirms higher customs duty rate based on bill of entry date, dismissing appeal.

The appeal was dismissed, affirming the higher rate of customs duty imposed on the appellants due to a change in classification under the Customs Tariff ... Customs - Rate of duty, and withdrawal of exemption - Customs Classification Issues:1. Interpretation of customs duty rate change due to amendment in the Customs Tariff Act.2. Application of section 15 of the Customs Act, 1962 in determining the rate of duty.3. Dealing with delay in granting entry inwards and its impact on customs duty liability.Analysis:1. The judgment dealt with the appellants' appeal regarding the imposition of a higher rate of customs duty on imported alloy steel blooms due to a change in classification under the Customs Tariff Act. The appellants argued that the rate of duty should be based on the date of import, not the subsequent change in classification. Reference was made to a Full Bench decision emphasizing the distinction between chargeability of goods to duty and the rate of duty to be levied.2. Section 15 of the Customs Act, 1962 was crucial in determining the rate of duty applicable to the imported goods. The section specifies that the rate of duty is based on the date of presenting the bill of entry. The judgment clarified that since the goods were dutiable upon import, the rate of duty had to be determined as per section 15, not the date of import into territorial waters.3. The issue of delay in granting entry inwards to the vessel was raised by the appellants to argue for a deemed date of entry inwards. They cited a previous case where a delay was deemed malicious, leading to a change in duty liability. However, the court distinguished the present case, highlighting that there was no deliberate delay in granting entry inwards. The court also referenced a public notice regarding procedures for granting entry inwards, emphasizing the need for readiness of the vessel to unload cargo.4. The judgment also addressed a comparison with a Madras High Court decision regarding tariff amendments and the application of exemption notifications. The court disagreed with the reasoning of the Madras High Court, emphasizing that the General Clauses Act provision cited did not apply to cases involving new tariff entries introduced by amendments.5. Ultimately, the appeal was dismissed, affirming the higher rate of duty imposed on the appellants due to the change in classification under the Customs Tariff Act. The court found no grounds to support the appellants' contentions regarding the date of import, application of section 15, or the alleged delay in granting entry inwards.6. The judgment concluded with a dismissal of the appeal and no order as to costs, settling the dispute over the customs duty rate applicable to the imported alloy steel blooms.