Customs duty rate on deemed delivery of bill of entry governs imported goods; higher revised duty was not payable.

For goods imported in anticipation of the vessel's arrival, the applicable customs duty was the rate in force on the date the bill of entry was deemed delivered under Section 37 of the Sea Customs Act, 1878. The Explanation treated a bill of entry delivered before arrival as delivered on the date the order for entry of the vessel inwards was made under Section 57. On the facts, the vessel had been allowed to break bulk before the enhanced rate took effect, and the contemporaneous endorsement supported that the requisite order had already been made. The revised higher duty was therefore not payable, and the original assessment at 10% was upheld.

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Issues: Whether, for goods imported in anticipation of the vessel's arrival, the rate of customs duty was to be fixed with reference to the date when the bill of entry was deemed delivered under Section 37 of the Sea Customs Act, 1878, and whether the subsequent increase in duty could be applied.

Analysis: Section 37 fixed the applicable rate of duty as the rate in force on the date the bill of entry was delivered to the Customs Collector under Section 86. Its Explanation treated a bill of entry delivered in anticipation of arrival as delivered on the date an order was given under Section 57 for entry of the vessel inwards. Section 57 also prohibited breaking bulk until the manifest and application for entry inwards had been presented and the order had been made. On the record, the vessel had been allowed to break bulk before midnight on 28 February 1961, and the contemporaneous endorsement on the entry application supported the conclusion that the requisite order had been made before the enhanced rate came into force. The material relied on by the revenue did not justify disturbing the original assessment at 10%.

Conclusion: The applicable duty was the rate in force when the bill of entry was deemed delivered, and the revised higher duty was not payable. The appeal failed.

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