Conditional customs clearance triggers duty liability when the clearance condition is breached, and a later bill of entry does not alter it.

Conditional clearance of an imported aircraft without duty was treated as attracting duty once the permitted six-month period expired without removal. Rule 58(6)(b) required payment of the duty leviable when the condition for duty-free clearance was not fulfilled, and the earlier clearance was regarded as clearance for home consumption. A later bill of entry did not alter the importer's liability or change the applicable duty position. The note applies the same principle used for goods conditionally cleared without duty: breach of the condition triggers the duty obligation.

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Issues: Whether customs duty on the imported aircraft was payable under Rule 58(6) of the Aircraft Rules and whether the subsequent filing of a bill of entry altered the liability or the applicable rate of duty.

Analysis: The aircraft was imported and cleared without duty on a declaration that it would not remain in India beyond the permitted period. Once it was not removed within six months, Rule 58(6)(b) required payment of the duty leviable. The clearance granted earlier was treated as clearance for home consumption, and a later bill of entry did not change the legal position. The Tribunal applied the principle that the liability arose from the conditional clearance itself and that the ratio governing duty payable on goods cleared subject to a condition applied to the aircraft as well.

Conclusion: The customs duty was payable by the importer in terms of Rule 58(6)(b), and the later bill of entry did not displace that liability or help the importer.

Final Conclusion: The appeal failed because the duty demand was upheld on the footing that the aircraft had been conditionally cleared and the condition for duty payment had been triggered.

Ratio Decidendi: Where goods are conditionally cleared without duty and the condition is not fulfilled, the duty becomes payable in accordance with the governing condition, and a subsequent bill of entry does not alter that liability.

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