Bharat Petroleum Corporation Ltd VERSUS C.C.-Kandla

Customs Appeal No.11542 of 2013

(Arising out of OIA-25/2013/CUS/COMMR-A-/KDL dated 21/02/2013 passed by

Commissioner of CUSTOMS-AHMEDABAD)

 

Bharat Petroleum Corporation Ltd

VERSUS

C.C.-Kandla

 

APPEARANCE:

Shri T.C. Nair, Advocate for the Appellant

Shri Tara Prakash, Assistant Commissioner (AR) for the Respondent

CORAM: HON’BLE MEMBER (JUDICIAL), MR. RAMESH NAIR

HON’BLE MEMBER (TECHNICAL), MR. RAJU

Final Order No. A/ 10064 /2023

DATE OF HEARING: 10.01.2023

DATE OF DECISION: 10.01.2023

RAMESH NAIR

The issue involved is that whether customs duties on import of bulk

liquid cargo (Motor Spirit) are payable on the value determined as per the

quantity received in shore tanks, as claimed by the appellants, or on the

transaction value as per the B/L or invoice of the overseas supplier, as held

by the Lower authorities, irrespective of whether the imported goods are

chargeable to ad valoerm rate of specific rate of duties.

2. Shri T.C.Nair, learned counsel appearing on behalf of the appellant

submits that this issue has been considered in various judgments including

the judgment of Hon’ble Supreme Court whereby, it was ruled that in case of

difference of quantity mentioned in the invoice and shore tank quantity in

respect of imported bulk liquid cargo, the quantity of shore tank should be

considered for assessment. He relied on following judgments and board

circulars:-

 Mangalore Refinery & Petrochem- 2015 (323) ELT 433 (SC)

 Mangalore Refinery & Petrochem- 2006 (205) ELT 753 (Tri)

 Mangalore Refinery & Petrochem- 2006 (233) ELT 528 (Tri)

 Mangalore Refinery & Petrochem- 2014 (307) ELT 119 (Tri)

 Bharat Petroleum Corpn- 2017-TIOL-2316-CESTAT-AHM

 M.F.C.A. (D.R.) Circular No.96/2002-Cus dated 27.12.2002

 M.F. (D.R.) Circular No.6/2006-Cus dated 12.01.2006

 Circular No.34/2016-Cus dated 26.07.2016

3. Shri Tara Prakash, learned Assistant Commissioner (AR) appearing on

behalf of the revenue reiterates the finding of the impugned order.

4. On careful consideration of the submission made by both the sides and

perusal of records, we find that in the light of the settled law in the

judgment cited by the learned counsel particularly, the landmark judgment

of Apex Court in the case of Mangalore Refinery & Petrochem (supra). The

issue in hand has been settled in favour of the assessee. Accordingly, the

assessment of import of bulk liquid cargo should be done on the basis of

shore tank quantity and not on the basis of quantity mentioned in the

invoice.

5. Accordingly, the impugned order is not sustainable hence the same is

set aside. Appeal is allowed.

(Operative portion pronounced in the open court)

(RAMESH NAIR)

MEMBER (JUDICIAL)

(RAJU)

MEMBER (TECHNICAL)