TaxTMI 
TaxTMI 
2022 (4) TMI 891
X X X X Extracts X X X X
X X X X Extracts X X X X
....orted in ships they can be in the form of container cargo, break bulk cargo, bulk cargo, etc. Further, the bulk cargo could be liquid cargo or solid cargo. When the imported good is liquid bulk cargo the liquid is filled directly into the vessel and it is pumped out at the destination. When the vessel is filled with the liquid cargo, it sinks a little into the sea because of the weight. The extent to which the vessel sinks into the sea is used to determine of the quantity of cargo loaded into the vessel. This report is called the "ullage report". When the cargo reaches the destination the liquid is pumped into tanks on the shore. The quantity of the liquid pumped into shore tanks is also measured. The radius of the shore tanks is known, the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....report should be reckoned for determining the customs duty. It has been decided by the Hon'ble Supreme Court in the case of Commissioner of Customs Vs. National Organic Chemical Indus. Ltd [2002 (142) ELT A280(SC)] that the shore tank report must be considered for determining the duty and not the ullage report. After this order of the Supreme Court, the CBEC has issued Circular No. 96/2002-Cus dated 27 December 2002 directing as follows: "7. In the light of above, I am directed to convey that in case of all bulk liquid cargo imports, whether for home consumption or for warehousing, the shore tank receipt quantity should be taken as the basis for levy of customs duty. Pending provisional assessments may be finalized accordingly. In t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....pose as per the Customs (Import of Goods at Concessional rate of Duty for Manufacture of Excisable Goods) Rules, 1996. In terms of Rule 8 of these Rules if the imported goods are not used for the intended purpose, action can be taken against the importer to recover the differential duty at the rate applicable but for the concession. Crude palm oil being a liquid bulk commodity, was imported by the appellant in bulk and pumped into shore tanks which are part of the custom bonded premises. When pumping oil from the vessel into the shore tanks, the appellant filed into-bond bills of entry. Thereafter, the appellant filed Ex-Bond bills of entry from time to time and cleared the imported palm oil stored in the tanks to its refineries. The case o....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... specified in the circular for taking dip measurements and shore tanks for arriving that the quantity; (iv) The Commissioner of Central Excise, Vishakapatnam had issued a Public Notice para 8 of which had directed that the measurement should be taken after the cargo is settled. However, no time limit has been fixed for settling of the cargo in the tank. 8. In view of the above the impugned orders in appeal are not legal and proper and requires to be set aside for the aforesaid reasons. Learned Departmental Representative reiterated these submissions. 9. Learned Counsel for respondent submits that the issue has already been settled by this Tribunal in respect of the same appellant and Revenue has not even appealed against the orders. Mer....
X X X X Extracts X X X X
X X X X Extracts X X X X
....k quantity should be considered for assessment of duty and not ullage report. The previous orders of this Tribunal followed the same. In some cases the orders of this Tribunal were also not challenged by the Revenue. The learned Commissioner (Appeals) has followed the order of this Tribunal as he is bound to as per judicial discipline. The argument of the Revenue is that the Commissionerate has now decided to challenge one of the previous orders of this Tribunal. Hence these appeals. To put the appeals in perspective, Revenue's case is that since they decided to file an appeal against one of the orders of the Tribunal: a. Commissioner (Appeals) should have defied the orders of this Tribunal b. He should not have followed the law laid d....