UNION OF INDIA Vs. ALUMINIUM INDUSTRIES LTD

JUDGEMENT

(1.) THIS appeal is by the Union of India in challenge of the decision rendered by a learned single judge of this court declaring that M/s. Aluminium Industries Ltd. , Kundara is not liable to pay any further amount towards duty for import of the goods covered by a consignment which arrived at the Cochin Port on 12. 8. 1982 (reported in 1989 (1) K. L. T. 355 ).

(2.) FACTS in brief are these: M/s. Aluminium Industries ltd. Kundara (ALIND for short) imported some aluminium rods for which shipment was made from Switzerland. A vessel carrying 75 metric tonnes of such aluminium rods arrived at Cochin Port on 12. 8. 1982. The customs authorities assessed the import duty of Rs. 5. 37. 670/- on the said goods, but as the customs authorities refused to give clearance for release of the rods, ALIND filed the original petition for a direction to the appellants to permit ALIND to clear and transport the goods. In the counter affidavit filed on behalf of the appellants it was contended that the import duty of Rs. 5,37,670/- was assessed on the goods on the erroneous impression that rate of duty on 2. 8. 1982 was the same as the rate prevalent on 31. 7. 82. But as a matter of fact new rates have been publicized by the Central Government which came into force on 1. 8. 1982, as per which the duty which should have been assessed is Rs. 11,99,211/ -. The assessment was corrected accordingly as per the powers conferred on the customs officials by virtue of S. 154 of the Customs Act (for short the act) and since ALIND has not paid the said amount, the customs officials did not permit the goods to be cleared from the Port.

(3.) WE may make a reference to the latter aspect though alind has not challenged that part of the judgment before us. S. 15 of the Act deals with the date for determination of the rate of duty and tariff valuation of imported goods. It says that the rate of duty applicable to the imported goods shall be the rate in force on the date on which a bill of entry in respect of such goods is presented under S. 46. But the proviso to sub-sec. (1)reads thus: "provided that if a bill of entry has been presented before the date of entry inwards of the vessel by which the goods are imported, the bill of entry shall be deemed to have been presented on the date of such entry inwards". The expression "entry inwards of the vessel" is not defined in the Act, but its connotation can easily be gauged by a reference to S. 31 of the Act, As per she said provision, the master of a vessel shall not permit the unloading of any imported goods until an order has been given by the proper officer "granting entry inwards to such vessel". It is therefore clear that the date of arrival of the vessel at the Port of Cochin cleared by the order given by the proper officer granting entry is the date of entry inwards of the vessel. There is no dispute that the said date was 2. 8. 1982. The corollary is that the rate of duty applicable is the rate which was in force on 2. 8. 82. It has not been disputed before us that if the said rate had to be followed, the amount assessed by the appellant as the total duty payable (Rs. 11,99,211-) is the correct, amount.