Bharat Petroleum Corporation Ltd Vs C.C.-Kandla (CESTAT Ahmedabad)
CESTAT Ahmedabad held that imports of Motor Spirit/ High Speed Diesel is assessable on actual receipt in shore tank and not transaction value based on invoice price of overseas supplier.
Facts- The issue involved in the present case is that the bulk liquid cargo imports of Motor Spirit [MS, for short] ,on 22.06.2011, whether custom duty is payable on the value determined on the quantity received in Shore Tanks as claimed by the Appellants or on transaction value based on invoice price of the overseas suppliers, as held in the impugned order dated 21.02.2013, irrespective of whether the cargo is chargeable to ad valorem rate of duty or to specific rate of countervailing duties.
Conclusion- This Tribunal in the appellant’s own case held that the Customs duty is leviable on actual receipt shore tank quantity and not quantity mentioned in the invoices.
Held that appellant’s claim of payment of Customs duty on quantity received in shore tank is correct and legal and revenue claim of duty payment on transaction value based on invoices of all overseas suppliers is not sustainable.
FULL TEXT OF THE CESTAT AHMEDABAD ORDER
The issue involved in the present case is that the bulk liquid cargo imports of Motor Spirit [MS, for short] ,on 22.06.2011, whether custom duty is payable on the value determined on the quantity received in Shore Tanks as claimed by the Appellants or on transaction value based on pnvoice price of the overseas suppliers, as held in the impugned order dated 21.02.2013, irrespective of whether the cargo is chargeable to ad valorem rate of duty or to specific rate of countervailing duties.
2. Ms. Padmavati Patil, Learned Counsel along with Shri Kiran Chavan, Learned Advocate appearing on behalf of the appellant submits this issue has already been decided by the Hon’ble Supreme Court in the case of Mangalore Refinery & Petrochemicals- 2015 (323) ELT 433 (S.C) and relying on the said judgment this Tribunal in the appellant’s own case also allowed the appeal holding that in the facts of the case the Customs duty is leviable on the actual receipt of the shore tank quantity and not on the basis of invoices. She also placed reliance on the following judgments and board circulars:-
