Reliance Industries Limited Vs Commissioner of Customs (CESTAT Ahmedabad)
CESTAT Ahmedabad held that in case of bulk liquid cargo imports measurement in tanks on shore into which such cargo is pumped from the tanker is to be considered as basis for levy of customs duty.
Facts- M/s Reliance Industries Ltd vide Miscellaneous application has requested for rectification of mistake in the final order dated 3rd June, 2025 passed by this Tribunal. It is contested that Hon’ble Tribunal in para 5 of it’s order has placed reliance on final order No. 12380 of 2023 dated 31.10.2023 passed in their case which in fact has been recalled by the Tribunal by its order dated 25.04.2024, on the ground that the said order dated 31.10.2023 suffered from mistakes apparent from the face of the record. They had raised this point in their appeal which was also noted by the Tribunal. Placing reliance on a recalled order is clearly a mistake apparent in the record. Further, Hon’ble Tribunal has not at all considered and given findings on their submissions that quantity as per Ship Ullage Measurement is irrelevant as it does not represent the actual quantity unloaded in India.
Conclusion- Held that it is the quantity in the shore tank which should be the basis for payment of customs duty. We therefore find that quantity in shore tank is the basis on which the event of importation gets decided and not the bill of lading quantity. Since the shore tank quantity was also to be the basis as per the Circular of 2006 but only for goods assessed at specific rate of duty and also in the decision of Hon’ble Apex Court in Mangalore Refinery and Petrochemicals Ltd., we hold that the quantity imported into India is the quantity received in shore tank. The earlier decision in the case of Hindustan Petroleum Corporation Limited was concerned about the basis of assessment and not specifically about when import actually takes place on soil of India.
