TaxTMI 
TaxTMI 
2015 (7) TMI 26
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....that in respect of their liquid cargo import the shore tank quantity received is less than the Bill of Lading quantity. Therefore, the duty paid by them on the Bill of Lading quantity is in excess of duty actually payable on the actual quantity imported. The refund is claimed for the differential quantities which were not arrived/discharged. In other words, shore tank receipt quantity should have been taken into account for calculation of duty in terms of Board's Circular 96/2002 dated 27.12.2002 which was issued on the basis of Hon'ble Supreme Court's judgment in the case of Commissioner of Customs, Mumbai vs. NOCIL Ltd. - 2002 (142) ELT A280 (SC). However, the refund claim was rejected on the ground that the Board's Circul....
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....ustoms - 2000 (115) ELT 42 (SC). The learned Counsel further relied on the case of Commissioner Customs, Vishakhapatnam Vs. Ruchi Infrastructure Ltd. - 2008 (224) ELT 477 (Tri-Bang), which held that the issue of assessment on the basis of shore tank quantity is no longer res integra. He also relied on the case of General Foods Ltd. Vs. Commissioner of Customs, Jamnagar - 2008 (232) ELT 750 (Tri-Ahmd) in which it was held that Tribunal decisions lay down the correct interpretation of law and cannot be ignored on the ground that there is a contrary Circular of the Board. 5. The learned AR reiterated the findings of the Commissioner. 6. We have considered the submissions of both sides. The facts are clear. The goods in the present case a....
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.... ad valorem basis. Noting that in such cases there may not be any requirement for determination of the quantity of goods as the basis for levy of customs duty would be the transaction value, Board clarified that where customs duty is leviable on ad valorem basis, the assessment of Liquid Cargo should be based on invoice price which is the price paid or payable for imported goods i.e. transaction value irrespective of quantity of shore tank measurement. However, wherever the customs duty is levied at specific rate, the determination of quantity would be relevant for the levy of customs duty. 6.1 We have seen Board Circular 6/2006. We cannot agree with the appellant's contention that the Circular clarifies that where the imported goods....
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....resent case relates to situations where tariff value is adopted for assessment purposes and duty is charged on ad valorem basis. For convenience, we may extract the relevant sections i.e. Section 14(1) and Section 14(2) of the Customs Act, as under:- "14(1) For the purposes of the Customs Tariff Act, 1975, or any other law for the time being in force, the value of the imported goods and export goods shall be the transaction value of such goods, that is to say, the price actually paid or payable for the goods when sold for export to India for delivery at the time and place of importation, or as the case may be, for export from India for delivery at the time and place of exportation, where the buyer and seller of the goods are not related ....
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....ot correct. The valuation aspect should not be confused with the aspect of duty payable on goods. Section 14 determines the value of goods for delivery at the time and place of importation. Thus, what is important is to see the value of goods imported i.e. value of goods that have landed and reached the Customs barrier. And duty has to be charged on goods actually imported as per apex Court judgment in the case of NOCIL (supra). 6.4 Therefore the real question to be answered is whether the total duty payable will be the duty on the proportionate value of goods received in shore tanks or on the total transaction value. It was held by the Hon'ble Supreme Court in the case of Garden Silk Mills vs. Union of India - 1999 (113) ELT 358 (SC....