Supreme Court

Mangalore Ref. and Petrochemicals Ltd. v. Commissioner of Customs, Mangalore

MANU/SC/0960/2015

02.09.2015

Customs

Quantity of goods actually imported not bill lading to determine value of goods imported

Levy of import duty can be imposed only on imported goods, not on goods that escaped payment of duty. In the instant case, the Assessee had not paid import duty on 71 consignments of crude oil. On appeal was the Tribunal's order that duty had to be paid on the total payment made by the Assessee irrespective of the quantity received. Disagreeing with the rationale, the Court held that no customs duty, neither specific rate nor ad valorem, was leviable on goods pilfered, lost or destroyed until a bill of entry for consumption in India or an order to warehouse the goods was made. Instead, the quantity of the crude oil actually received into shore tanks in India was the basis for payment of customs duty.

Relevant

Garden Silk Mills Ltd. v. Union of IndiaMANU/SC/0627/1999
Union of India and others vs. Apar Private Ltd. & Ors.MANU/SC/0428/1999

Tags : Import quantity bill of lading value

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