Duty calculation based on Bill of Entry date, not removal date. Customs Act, 1962 prevails.

The Tribunal held that duty amount for imported goods should be calculated based on the rate of exchange on the date of presenting the Bill of Entry, in accordance with Sections 14, 15, and 46 of the Customs Act, 1962. The decision overturned the Collector (Appeals)'s ruling that relied on a Customs House Public Notice, emphasizing the importance of aligning duty rates with the law prevailing on the date of actual removal of warehoused goods. The Assistant Collector's issuance of a show cause notice for differential duty amount was upheld, setting aside the Collector (Appeals) order and allowing the Department's appeal.

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Issues:
1. Calculation of duty amount based on the rate of exchange.
2. Interpretation of Sections 14, 15, and 46 of the Customs Act, 1962.

Analysis:
The case involved the importation of plant and machinery where the duty amount payable was calculated based on the rate of exchange prevailing on the date of clearance, rather than the date of filing the Bill of Entry. The Assistant Collector issued a show cause notice for the differential duty amount, which was confirmed in the order when no response was received. The assessee challenged this order before the Collector (Appeals), who set it aside based on a Customs House Public Notice. The Department appealed this decision.

The Tribunal focused on the effect of Sections 14, 15, and 46 of the Customs Act, noting changes in these sections over the years. The law specified that for goods imported under Section 46, the rate of duty, rate of exchange, and tariff valuation should be based on the date of presenting the Bill of Entry. The Supreme Court's decision in a similar case emphasized that the rate of duty should align with the law prevailing on the date of actual removal of warehoused goods.

Following amendments in 1978, the rate of exchange was no longer determined under Section 15 but under Section 14, based on the date of presenting the Bill of Entry. Therefore, the rate of exchange on the date of presenting the Bill of Entry under Section 46 should be used when calculating duty and tariff valuation on the date of goods' removal from the warehouse. The Tribunal found the Collector (Appeals)'s interpretation erroneous and upheld the Assistant Collector's decision, setting aside the Collector (Appeals) order and allowing the appeal.

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