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2019 (8) TMI 1146 - CESTAT BANGALOREShort payment of duty - import of petroleum products - non-inclusion of freight incurred in respect of smaller vessels called the daughter vessels - scope of remand - imposition of penalty u/s 114A of the Customs Act by Bench - this Bench in the case of INDIAN OIL CORPORATION LTD. VERSUS COMMISSIONER OF CUSTOMS, COCHIN [2007 (6) TMI 48 - CESTAT, CHENNAI] remanded the matter to the Commissioner directing him to pass a speaking order after finalization of provisional assessments - bonafide belief for non-payment of duty - HELD THAT:- In the Final Order of INDIAN OIL CORPORATION LTD., the Bench had categorically held that Section 114A of the Customs Act 1962 does not apply in this case and no penalty can be imposed upon the appellant. We are not aware of any order of a higher judicial forum setting aside this finding of this Bench. The imposition of penalty by the Commissioner in the impugned order is a clear violation of this direction by this Bench and therefore, the same needs to be set aside. Inclusion of freight of the daughter vessels - HELD THAT:- The method has been prescribed by the Board and the aforesaid Circular No. 04/2006 which is binding upon the departmental officers including the Commissioner. Wherever WSO rates are available, it has been categorically held that those rates must be applied and alternative method can be used only if these rates are not available - In the instant case, the Learned Commissioner has ignored this direction of the Board and has reckoned a different value on the ground that the appellant has recovered a higher amount towards freight. Such an order is contrary to the directions of the CBEC which are binding upon him. The duty liability needs to be worked out directly from the WSO rates which, according to the appellant, are available for the period and any demand made on the basis of some other calculation is not sustainable - the matter must be remanded to the original authority for the limited purpose of calculation of the differential duty payable as per the WSO rates duly attested on the basis of AFRA rates during the relevant period. Appeal allowed by way of remand.
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