2025 (12) TMI 130

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.... Therefore, all are disposed by a common order. 2. The facts of the case are as under: "2. The facts of the case in brief are that the Appellants are public sector undertaking engaged in the business of refining of crude petroleum ad marketing of various finished petroleum products thereof. For their requirements at the Paradeep Terminal, the appellants imported High Speed Diesel (HSD) from abroad, for which import was made through the port of Paradeep. From the oil jetty at Paradeep, the appellants receive the HSD into their storage tanks in their terminal, through dedicated pipelines. The final customs duty which are being assessed are supposed to be paid on the actual shore quantity receipts whereas the same have been determi....

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....ers. Therefore, the appellants were rejected. 4. Against the said order appellants were before us. 5. The Ld. Consultant appearing on behalf of the appellant submits that the impugned order is contrary to the decision of the Apex Court as stated in the circular no. 96/2002 dated 27.12.2002 read with amended circular no. 6/2006 dated 12.1.2006. Therefore, the Adjudicating Authority has fell in error as it is a case of bulk liquid cargo imports, whether for home consumption or for warehousing, the shore tank receipt quantity should be taken as the basis for the levy of customs duty which Adjudicating Authority has failed to do so. Further he submits that the Adjudicating Authority has fell in error while including the demurrage charges ....

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....e taken as the basis for the levy of customs duty and as per the circular no. 6/2006 dated 12th January, 2006 also direct that import duty of liquid cargo and bulk shall be levied from transaction value irrespective of quantity receipt on shore tank. The said circular laid down that where the duty is specific it shall be levied on shore tank receipt quantity and where it is levied on advalorem basis it shall be levied on transaction value irrespective of quantity received onshore. Admittedly, in this case duty is specific. In that circumstances, the duty is to be levied on shore tank receipt quantity not on transaction value. Therefore, we hold that in all the cases as duty is specific therefore, duty is to be levied on the shore tank recei....

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....le to pay duty on shore tank receipt quantity. 10. With regard to the demurrage charges which has been included in the assessable value, we find that the said issue has been settled by the Hon'ble Apex Court in the case of CCE, Mangalore versus Magalore Refinery & Petrochemicals Ltd., 2015 (325) E.L.T.214 (S.C) wherein the Hon'ble Apex Court has held as under: " 5. We have heard the counsel for the parties at length . It is not even necessary to go into the various nuances of the matter as we are of the opinion that these appeals are bound to fail on one simple ground. The demurrage charges are admittedly incurred after the goods reached at Indian ports and therefore, it is a post-importation event. Such charges, therefore, cann....