TMI Blog1999 (8) TMI 97X X X X Extracts X X X X X X X X Extracts X X X X ..... m authorities equivalent to the whole of the estimated/provisional custom duty. At the time of removal of the goods to the Customs bonded warehouse the BMC levied octroi duty on the said goods by adding the amount of estimated provisional custom duty to the CIF value of goods. Thereafter, the goods were removed from the customs bonded warehouse by the petitioners on payment of reduced/concessional customs duty. The petitioners preferred applications to the BMC for refund of octroi levied on the difference between the provisional/estimate custom duty and the concessional/reduced duty actually paid. The applications for refund were rejected by the BMC on the ground that the octroi charged on the value of consignment at the time and place of import was legal and proper. 3.The petitioners had also imported certain goods, such as components for heat exchangers, etc. to be used in their manufacturing process. When the goods were arrived to the custom bonded warehouse, the custom authorities provisionally calculated the custom duty likely to be payable thereon as Rs. 5,04,201/- on the CIF value of Rs. 8,20,373/-. The goods were cleared by the petitioners from the custom bonded warehouse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arrier of the Corporation. While determining value of the article, every other duty paid in respect of the article is taken into consideration and the account of the duty or the charge are included in the value of the article. While determining the value of the article, the quantum of custom duty, excise duty, sales tax etc. are also included. It is not in dispute that at the time of entry into octroi limits of the Corporation the company was not liable to pay any custom duty in case of the exemption granted by the Government. It is therefore difficult to appreciate nor the Corporation can include the amount of customs duty while ascertaining the value of the article. It is not open for the octroi authorities to include the custom duty in the value of the article merely because of some feature point of time the company may be liable to custom duty in case the company commits a breach of the conditions of the advance licence." 6.Mr. Bharucha, the learned Counsel for the BMC submitted that the liability to pay the octroi arises as soon as the goods are brought within the octroi limits of the Corporation. Once the goods crossed the octroi barrier then the liability to pay the tax ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal custom duties, excise duties, countervailing duty, sales tax, transport fee, and freight charges, carrier charges and all other incidental charges, excepting octroi incurred or liable to be incurred by the importer till the articles are removed from the place of import." Rule 4(c) of the said Rules reads as under: "In respect of the articles imported from foreign ports subject to customs duty and liable to octroi it shall not be necessary for the importer to produce the original invoice but the weight and the value accepted by the customs shall be accepted as basis for the levy of octroi and octroi shall be levied on articles liable to octroi on ad valorem basis by adding the customs duty incurred or liable to be incurred to the aforesaid value accepted by the customer". Rule 26 deals with the refund application which reads as under: "When octroi has been wrongly recovered or has been recovered in excess through inadvertence, error, misconstruction, misinterpretation or any other reason on the part of the Municipal Octroi Staff or that of the agents appointed by the Commissioner under Section 213 of the Bombay Municipal Corporation Act, such excess may be refunded to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... v. Shroff and Company (Supra) the contention of the petitioner was that the countervailing duty can be levied in the case of an excisable article imported by payments upon issue for sale from a warehouse and therefore the liability to pay countervailing duty is not incurred by the importer till the liquor is removed from the bonded warehouses for the purpose of sale. The division bench held that octroi authorities are not concerned as to when the importer should remove the liquor from the bonded warehouse or what amount of countervailing duty the importer is liable to pay on the date of such removal. The octroi authorities are concerned with the question of assessing the value of imported liquor on the date when such liquor is brought within the limits of Greater Bombay and the value of the imported liquor, countervailing duty prevalent on the date of import within the limits of State of Maharashtra. The mere fact that the duty may increase or decrease at a subsequent date when the importer chooses to remove the liquor from the bonded warehouse would have no impact upon the fact as to what was the value of the liquor on the date when such liquor was brought within the limits of Gre ..... X X X X Extracts X X X X X X X X Extracts X X X X
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