The single judge bench of Calcutta High Court quashed the enhanced duty rate charged on the import of crude oil, as it was imported before the effect of notification on the enhancement of duty rate.
The petition was filed by the petitioner, M/s. Ruchi Soya Industries Ltd being aggrieved by the action of the respondent, customs authorities concerned charging an enhanced rate of duty on the consignments of crude oil based on notification No. 103/2020-Customs dated 29th October 2020 effective which was operational from 23:18:25 hrs of 2020 was applied retrospectively.
The petitioner entered into four contracts with its foreign supplier in Singapore for the import of 14000 MTs of Crude Palm Oil of Edible Grade in Bulk. The aforesaid subject goods were supplied on 12.10.2020 against Six Invoices and were shipped against Sixteen Bills of Landing. On 15.10.2020 tariff value regarding the subject goods was fixed at the rate of 755 USD PMT vide notification No. 100/2020-Customs dated 15.10.2020 issued under Section 14 (2) of the Customs Act, 1962.
The Tribunal observed that the records stated that bills of entry relating to goods in question were already self-assessed on 23.10.2020 and 26.10.2020 at the prevailing rate of duty and Entry inward was granted to the vessel in question carrying the subject goods on 29.10.2020 at 11:00 hrs which was the time before the time of coming into effect the E-Gazetted Notification which enhanced the duty rate.
Justice Md. Nizamuddin directed the respondents/authorities concerned to refund to the petitioners the excess duty amounting to Rs. 96,60,467/- which was collected at a higher tariff value, within 8 weeks from the date of communication of this order.
Mr Rajesh Rawal and Mr Prithu Dudhoria appeared on behalf of the petitioner and Mr B.P. Banerjee and Mr Abhradip Maity appeared on behalf of the respondent.
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