Customs duty on bulk liquid imports is based on quantity actually received at the Indian port, not bill of lading quantity.

For bulk liquid imports, customs duty is assessed on the quantity actually received into the shore tank at the Indian port of discharge, not on the bill of lading or transaction quantity. The distinction between specific-rate duty and ad valorem duty does not change that rule. An earlier revenue circular could not override the statutory scheme or the authoritative position on valuation and assessment. The article states that this principle governed the dispute over imported crude petroleum oil and that the challenge to the refund-related order was rejected, leaving the lower appellate order undisturbed.

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Issues: Whether customs duty on imported crude petroleum oil was assessable on the basis of the quantity actually received at the port of discharge in India or on the basis of the bill of lading / transaction quantity.

Analysis: The relevant legal position had already been settled that, for bulk liquid cargo, the basis of assessment is the quantity actually received into the shore tank at the port in India. The distinction between specific rate duty and ad valorem duty does not alter that principle. The earlier circular relied upon by the revenue could not override the statutory scheme, and the authoritative declaration on valuation and assessment governed the present dispute.

Conclusion: The duty had to be assessed on the quantity actually received in India, and the challenge to the refund-related order failed.

Final Conclusion: The appeal was without merit and stood dismissed, leaving the lower appellate order undisturbed.

Ratio Decidendi: For bulk liquid imports, customs duty is chargeable on the quantity actually received at the Indian port of discharge, and not on the bill of lading quantity; administrative instructions contrary to that rule cannot prevail over the statutory scheme.

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