SRI MAHARAJA INDUSTRIES Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) THE appellants imported RBD Palm oil and filed Warehousing Bill of Entry dated 22.1.04. The goods were cleared ex -bond under Bills of Entry No. 611676 and 611677 both dated 6.4.2004, paying duty on the basis of tariff value in force. The Commissioner of Customs, Chennai had issued a Public Notice No. 20/2004 dated 3.2.2004 laying down, inter alia, that exchange rate applicable for ex -bond Bills of Entry where duty is paid on tariff value will be the rate 'as on the ex -bond Bill of Entry' ie, as in force on the date of filing of exbond B/E. On 26.7.04, by a corrigendum, the above Public Notice was corrected to the effect that the relevant exchange rate for such ex -bond Bills of Entry will be the rate as on the Warehousing Bills of Entry, in line with the law.

(2.) M /s Sri Maharaja Industries had paid duty on the goods cleared under the two ex -bond Bills of Entry dated 6.4.04 following the valuation as per the exchange rate ruling on the date of filing of ex -bond Bills of Entry as per the Public Notice No. 20/04 dated 3.2.04. When the department detected the error in the Public Notice compared to the legal provisions, a corrigendum was issued on 26.7.2004. Proceedings were also initiated to recover the short levy from importers including the appellant who had adopted incorrect rate of exchange and short paid duty. An amount of Rs. 1,53,299/ - was demanded from the appellant. The assessee challenged the demand and filed appeal before the Commissioner (Appeals). They argued that the corrigendum to the Public Notice did not have retrospective effect and that they had paid duty correctly as per the PN. The Commissioner (Appeals) rejected their appeal on the ground that duty had been correctly demanded in accordance with law. Hence this appeal.

(3.) HEARD both sides. When the goods subject to duty on the basis of value are imported, they are valued for assessment to duty in terms of Section 14 of the Customs Act, 1962. Section 14 reads as under: