2012 (6) TMI 177

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....f Lading, Invoice value and Ullage report where the quantity was expressed in MT. Lower authorities were of the view that the density of the oil needs to be tested and on finding that the density of the oil is slightly higher than the declared density, demand for recovery of the differential duty based upon the difference of duty calculated by applying the density ratio was raised. The adjudicating authority dropped the proceedings initiated by the show cause notice. The Commissioner of Customs (Preventive), Jamnagar, reviewed the order which dropped the proceedings initiated against the respondent assessee and filed appeal before the first appellate authority. The first appellate authority did not find any merit in the appeal filed by the ....

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....ace oil. This custom duty has been discharged by the respondent assessee on the invoices which are produced before the lower authorities for calculating the assessable value and duty liability. We find that the first appellate authority while rejecting the appeal filed by the Revenue has recorded following finding :-   5. At the time of hearing the respondent drew my attention to the CBEC Circular No. 6/2006 dated 12.1.2006, which stated that (emphasis supplied) in all cases where customs duty is liviable on ad valorem basis, the assessment of bulk liquid cargo should be based on invoice price paid or payable for the imported goods i.e. transaction value, irrespective of quantity ascertained through shore tank measurement or any oth....

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....hore tank measurement or any other manner in the above-referred CBEC Circular.   6. It is notable that the purchase contract had allowed density up to 0.99 gm/cc and yet there was no Clause in the contract to recover any extra price from the importer corresponding to the extra quantity, which may turn out as a result of higher density.   7. In the impugned orders, the lower authority has gone on record with the defence from the importer that the Chemical Examiner had admitted during his cross-examination that there could be variation in density calculation depending on the method used. It is on record that the SGS (India) and the Chemical Examiner used different methods for determining the density.   7. As against th....