TMI Blog2019 (2) TMI 778X X X X Extracts X X X X X X X X Extracts X X X X ..... , Member (Technical) Shri D.P. Bhave, Advocate, for appellant Shri Dharmender Singh, Superintendent (AR), for respondent ORDER Per: Dr. D.M. Misra This is an appeal filed against order-in-appeal No. 339 340/MCH/DC/Oil Unit/2012 dated 25.6.2012 passed by Commissioner of Customs (Appeals), Mumbai. 2. Briefly stated the facts of the case are that the appellant had imported bulk oil falling under Chapter 27 of the First Schedule to the Customs Tariff Act, 1975 during the relevant period. Alleging that the appellant had short paid duty amounting to ₹ 6,64,518/-, show cause notice was issued to them on 06.06.2006 for recovery of differential duty. On adjudication, the demand was reduced to ₹ 1,61,171/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purchase tax is the purchase of goods. The quantity of goods stated in a bill of lading would perhaps reflect the quantity of goods in the purchase transaction between the parties, but would not reflect the quantity of goods at the time and place of importation. A bill of lading quantity therefore could only be validly looked at in the case of a purchase tax but not in the case of an import duty. Thirdly, Sections 13 and 23 of the Customs Act have been wholly lost sight of. Where goods which are imported are lost, pilfered or destroyed, no import duty is leviable thereon until they are out of customs and come into the hands of the importer. It is clear therefore, that it is only at this stage that the quantity of the goods imported is to b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat a demand or duty on transaction value would be leviable in spite of ocean loss , it flies in the face of Section 23 of the Customs Act in particular, the general statutory scheme and Rules 4 and 9 of the Customs Valuation Rules. 18. We therefore, set aside the Tribunal s judgment and declare that the quantity of crude oil actually received into a shore tank in a port in India should be the basis for payment of customs duty. Consequential action, in accordance with this declaration of law, be carried out by the customs. 7. Following the ratio laid down in the aforesaid case, the impugned order is set aside and the appeal is allowed with consequential relief, if any, as per law. (Pronounced in court) - - TaxTMI - T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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