Customs Duty on Import of HSD by Indian Oil Corporation must be Based on Actual Oil Quantity Physically Recieved into Shore Tank: CESTAT [Read Order]
![Customs Duty on Import of HSD by Indian Oil Corporation must be Based on Actual Oil Quantity Physically Recieved into Shore Tank: CESTAT [Read Order]](https://www.taxscan.in/wp-content/uploads/2023/09/Customs-Duty-Import-of-HSD-HSD-Indian-oil-Corporation-Actual-Oil-Quantity-Physically-Recieved-Actual-Oil-Oil-Quantity-Shore-Tank-CESTAT-taxscan.jpg "Customs Duty on Import of HSD by Indian Oil Corporation must be Based on Actual Oil Quantity Physically Recieved into Shore Tank: CESTAT [Read Order]")
In the case of Indian Oil Corporation Limited (IOCL), the Ahmedabad bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) has held that Customs Duty on Import of High Speed Deisel (HSD) must be based on actual oil quantity physically recieved into shore tank. The appellant IOCL, Kandla had imported 98 consignments of HSD and SKO during the period from May 1994 to...
In the case of Indian Oil Corporation Limited (IOCL), the Ahmedabad bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) has held that Customs Duty on Import of High Speed Deisel (HSD) must be based on actual oil quantity physically recieved into shore tank.
The appellant IOCL, Kandla had imported 98 consignments of HSD and SKO during the period from May 1994 to December 1998 as a canalizing agency on behalf of himself as well as for M/s. Bharat Petroleum Corporation Limited, Kandla (BPCL) and M/s. Hindustan Petroleum Corporation Limited, Kandla (HPCL).
The respective oil Companies filed Ex- bond Bills of Entry which were provisionally assessed. The quantity which was meant for IOCL was warehoused in the warehouse of the IOCL and quantity meant for BPCL and HPCL was warehoused in their respective warehouse / shore tanks for which each one of them were holding proper Customs Warehouse License.
M/s. IOCL, BPCL and HPCL paid duty provisionally at the time of clearance from the warehouse by filing ex-bond bills of entry proportionately depending upon the quantity of HSD, SKO cleared by them.
M/s. IOCL, BPCL and HPCL have deposited an amount of Rs. 8,61,66,605/- after the issuance of above mentioned six show cause notices.
The question before the Tribunal is whether the duty at the time of finalization of final assessment is to be paid on the basis of invoice value and the quantity indicated on the bills of lading or the quantity received by the importer/ appellants in their warehouse/ shore tanks.
A two member bench Mr. Ramesh Nair, Member (Judicial) and Mr. C L Mahar, Member (Technical) held that actual oil quantity physically received into the shore tank should be taken as the basis for payment of duty at the time of ex-bond bills of entry.
To Read the full text of the Order CLICK HERE
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
