2024 (12) TMI 1667

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....y stated the facts of the case are that the appellant had imported Carbon Black Feed Stock Oil through Cochin Port against Bill of Entry No.5049262 dated 31.10.2011 (Appeal No. C/22628/2014) declaring the total imported quantity as 10000 MTS; and in Bill of Entry No.169492 dated 21.11.2005 as 8364.53 MTS (Appeal No.C/20548/2016). The assessee was issued with a letter for discharging differential duty on the value of the quantity received on which duty was paid and the transaction value of the quantity shown in the respective invoices. Consequently, demand of Rs.25,077/- and Rs.66,851/- were confirmed. The contention of the assessee all along was that there was short-receipt of the imported goods in their shore tank; accordingly, the value h....

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....here we have to construe the word "imported" occurring in Section 12 and this can only mean that the moment goods have entered the territorial waters the import is complete. We do not agree with the submission. This Court in its opinion in Bill to Amend Section 20 of the Sea Customs Act, 1878 and Section 3 of the Central Excises and Salt Act, 1944, Re [AIR 1963 SC 1760 = (1964) 3 SCR 787 sub nom Sea Customs Act (1878), S. 20(2), Re] SCR at p. 823 observed as follows : "Truly speaking, the imposition of an import duty, by and large, results in a condition which must be fulfilled before the goods can be brought inside the customs barriers, i.e., before they form part of the mass of goods within the country." It would appear ....

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....he levy of customs duty which is to be found in Section 12 of the said Act. Even when the measure talks of value of imported goods, it does so at the time and place of importation, which again is lost sight of by the Tribunal. And last but not the least, "transaction value" which occurs in the Customs Valuation Rules has to be read under Rules 4 and 9 as reflecting the aforesaid statutory position, namely, that valuation of imported goods is only at the time and place of importation. 17. The Tribunal's reasoning that somehow when customs duty is ad valorem the basis for arriving at the quantity of goods imported changes, is wholly unsustainable. Whether customs duty is at a specific rate or is ad valorem makes not the least differe....