2018 (8) TMI 639

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..... As per the established law and practice, the import duty in such cases is calculated depending upon the quantity received in the shore tanks and not what came in the ship. The quantity received in the shore tanks is measured using the calibration charts issued by the surveyors and confirmed by the Legal Metrology (Weights & Measures) Department. The calibration charts provide the data to quantify the cargo stored in the tanks and the volume of the cargo is calculated based on the calibration chart and the same is multiplied by the load port density and the temperature of the cargo. It was felt by the Dy. Commissioner from the shore tank survey ullage reports that the cargo quantified based on the calibration charts provided by the appella....

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....the differential duty as demanded. The lower authority, vide his Order-in- Original No.12/20087 dated 01.07.2008 confirmed the demands on the importer and appropriated the amount already paid by them against the demand. He also confirmed the interest at the appropriate rate and imposed mandatory penalty equal to the differential duty. Aggrieved, the appellant preferred an appeal before the first appellate authority who upheld the Order-in-Original and rejected the appeal. The appellant preferred this appeal against the Order-in-Appeal on the following grounds. A. The entire proceedings of the show cause notice leading to Order-in-Original are bad in law as the appellant had paid the duty demanded even before the show cause notice was issued....

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....r hand, reiterated the arguments made in the Order-in-Original and Order-in-Appeal and argued that it cannot be denied that there was excess quantity of which duty was not paid because the tanks of the appellant were not properly calibrated. It is only on the insistence of the department that the tanks were re-calibrated and the short payment noticed and therefore the demand along with interest and penalty are liable to be confirmed. 5. We have considered the arguments on the both sides. We find that the tanks needed to be calibrated and they were calibrated initially by one agency and they were re-calibrated on the direction of the department through another agency. The re-calibration resulted in re-calculation of the quantities in resp....