Customs duty on imported crude oil to be based on shore-tank receipt, not ship records, where precedent and circular align.

For imported bulk liquid cargo, customs duty is to be quantified on the quantity actually received in the shore tank rather than the higher figure shown in ship records. The Tribunal relied on prior Supreme Court dismissal of the Department's appeal on the same question and on a Customs Board circular directing assessment on shore-tank receipt. On that basis, the ship-side record method was held unsustainable and the duty computation was required to follow the shore-tank quantity.

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Issues: Whether duty on imported crude oil was to be quantified on the basis of the ship's records or on the quantity actually received in the shore tank.

Analysis: The dispute concerned the method of determining the quantity of bulk liquid cargo for customs duty purposes. The Tribunal noted that the Supreme Court had already dismissed the Department's appeal on merits in earlier decisions dealing with the same question, and that a subsequent Customs Board circular stated that quantification of bulk liquid cargo was to be based on receipt in the shore tank. On that basis, the lower authority's approach based on ship-side records could not be sustained.

Conclusion: The duty was required to be determined on the quantity received in the shore tank, not on the higher quantity shown in the ship's records, and the issue was decided in favour of the assessee.

Ratio Decidendi: Where bulk liquid cargo is imported, customs duty is to be quantified on the quantity actually received in the shore tank when that method is supported by binding precedent and the applicable departmental clarification.

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