TaxTMI 
TaxTMI 
2023 (7) TMI 217
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....US $ 1760/ M.Ton. One of the terms of the said contract was that the Quantity of the product at the Port of Loading shall be as determined by the Surveyor based on shore tank measurement and would be final and binding on both the parties. 1.1 The quantity ascertained at Load Port, for which the Bill of Lading and Invoice were issued, was 499.826 M.Ts and the foreign supplier raised Invoice for the price of US $ 879,693.76. 1.2 The said price of US$ 879,693.76, being the price payable and actually paid for the goods supplied, was accordingly, the transaction value of the goods under Section 14 of the Customs Act 1962. 1.3 Upon discharge of the goods in the Shore Tank after their arrival at the Port of Kandla, it was ascertained that the q....
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....ces reliance on the decision of M/s. Welspun Corporation Ltd Vs. C.C - 2019 (370) ELT 874 (Tri.- Ahmd.), and also on the decision of M/s. Payal Polypast Pvt Ltd Vs. C.C as reported in 2015 (317) ELT 477 (Tri- Ahmd.), to make a submission that for Bulk Liquid Cargo condonation of weight upto 3% has been permitted ignoring the public notice providing for 1%. He drew our attention to the public notice F. No. S/20-022/2010 appraising (G) dated 29.06.2010. The same is reproduced below: "OFFICE OF THE COMMISSIONER OF CUSTOMS CUSTOM HOUSE, KANDLA, KUCHCHH COMMISSIONERATE F. No. S/20-02/2010 Appg(G) PUBLIC NOTICE NO. 17/2010 DATED 29.06.2010 Sub: Guidelines for Assessment and Examination of goods on weighment basis Under the provisions of th....
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....ht, but the value of the Excess goods will be loaded in the total assessable value and appropriate duties will be recovered. (ii) If the variation is above +/-1%, value shall be loaded with adjudication with appropriate redemption fine and penalty. 4. In case of Marble Slab/Blocks (polished and rough) following practice will be followed. (i) In case of variation upto +/- 5% in terms of weight or surface area, value shall be loaded without adjudication and proper duty will be recovered. (ii) If the variation is above +/-5%, value shall be loaded redemption fine and penalty. and cases adjudicated with appropriate (iii) Actual quantity of the cargo will be debited against the license issued to the Importer. Encl: As above" ....
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.... i.e., invoice price and not the quantity. 3. The above issue has been under consideration for a long time and a number of assessments are pending at field level because of divergent views. The above issue was discussed in the Conference on "Customs Valuation and Customs Procedures" held on 21st and 22nd August 2003 and also in the Chief Commissioner's conference on Customs Valuation held on 1st October 2005 at Mumbai. The conference was of the view that the assessment of bulk liquid cargo should be based on invoice price, which is the price paid or payable for the imported goods, i.e., transaction value, irrespective of quantity ascertained through shore tank measurement or any other manner. Wherever the duty is leviable at specific....
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....he case of Mangalore Refinery and Petrochemicals Limited v. Commissioner of Custorns, Mangalore dated 2-9- 2015 (2015 (323) ELT 433 (S.C.)). 2. In the light of the above judgement, the Board has reviewed the Circular No. 96/2002-Customs dated 27-12- 2002 [2002 (151) E.LT. (T21)] & Circular No 06/2006 dated 12-1-2006 [2006 (193) ELT. (T40)] and it has been decided to rescind both these Circulars. 3. In case of all bulk liquid cargo imports, whether for home consumption or for warehousing, the shore tank receipt quantity Le.., dip measurement in on shore into which such cargo is pumped from the tanker, should be taken as the basis for levy of Customs Duty irrespective of whether Customs Duty is leviable at a specific rate or ad valorem ....