2002 (6) TMI 520 - AT - Customs

Summary

Issues:
1. Date of entry inwards of the vessel for customs clearance.
2. Impact of bad weather conditions on the entry date.
3. Interpretation of relevant legal provisions and precedents.
4. Discretion of customs authorities in granting entry inwards.

Analysis:
1. The case revolved around determining the correct date of entry inwards of a vessel for customs clearance. The vessel carrying imported goods arrived at Bombay on 17-7-1996 but faced delays due to bad weather conditions. The importer sought to amend the entry date to avail of lower duty rates introduced on 22-7-1996. The Assistant Commissioner refused the request, leading to an appeal.

2. The Commissioner (Appeals) found in favor of the importer, citing the readiness of the vessel to discharge cargo on 17-7-1996 based on a notice from the chartering agent. However, the Appellate Tribunal disagreed, emphasizing that the vessel could only be boarded on 24-7-1996 due to stormy weather conditions, which were beyond the customs department's control. The Tribunal held that the entry inwards could not have been granted earlier, rejecting the Commissioner's decision.

3. The Tribunal referred to the Supreme Court's judgment in Bharat Surfactants (Pvt) Ltd. v. Union of India and the Madras High Court's ruling in Omega Insulator Cable Company (India) Pvt. Ltd. v. CC to define the date of entry inwards. It highlighted that the vessel's actual entry inwards or the date recorded by the customs department determined the entry date. The Tribunal distinguished the Gujarat High Court's decision in Mafatlal Industries Ltd. v. Union of India, stating that it did not support the respondent's argument regarding the vessel's readiness for discharge.

4. Ultimately, the Tribunal allowed the appeal, overturning the Commissioner (Appeals)'s decision and reinstating the Assistant Commissioner's order. It emphasized that the delay in granting entry inwards was due to natural causes, such as bad weather preventing the preventive officer from boarding the vessel promptly. The Tribunal upheld the customs authorities' discretion in granting entry inwards based on procedural requirements and external factors affecting vessel operations.