COMMISSIONER OF CUSTOMS, CALCUTTA & ANOTHER versus BIECCO LAWRIE LTD.

Citation: [2008] 2 S.C.R. 257 · Decided: 01-02-2008 · Supreme Court of India · Bench: ASHOK BHAN · Disposal: Dismissed

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Judgment (excerpt)

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[2008] 2 S.C.R. 257 
_'", .. 
COMMISSIONER OF CUSTOMS, CALCUTTA & ANOTHER A 
V. 
BIECCO LAWRIE LTD. 
(Civil Appeal No. 2018-2019 of 2002) 
FEBRUARY 1, 2008 
B 
[ASHOK BHAN, DALVEER BHANDARI & 
r: 
P. SATHASIVAM, JJ.] 
Customs Act, 1962 - ss. 15(1), 46 and 49 - Imported 
goods-Superior Kerosene Oil cleared for home consumption c 
upon payment of duty - Goods stored in warehouse under 
.. 
provisions of s. 49 - Subsequent enhancement of rate of duty 
- Date for determination of rate of duty and tariff valuation of 
imported goods - Held: U/s 15(1 )(a), once goods are cleared 
for home consumption, duty would be payable on the date on D 
which Bill of Entry for goods is presented uls 46 - On facts, 
goods cleared for home consumption on payment of entire 
~ duty as applicable on that date - Bill of Entry for home 
consumption was presented in the prescribed form prior to 
enhancement of rate of duty - Customs Authorities passed E 
.,. 
out of charge order - Assessee had been clearing the goods 
from the storage tank as and when required - As such, goods 
cannot held to be warehoused goods - Thus, s. 15(1 )(a) is 
applicable - Enhanced rate of duty could not be levied. 
_... 
The imported goods-Superior Kerosene Oil were F 
cleared for home consumption by the Custom Officers 
on the payment of full duty by the respondent- importer 
as applicable thereon. The Bill of Entry was presented in 
the prescribed form. The goods being highly combustible 
material, the respondent filed an application under s. 49 G, 
-( 
of the Customs Act, 1962 seeking permission for storage 
of goods in the same warehouse/tank. The goods 
remained stored in warehouse. The respondent started 
lifting the goods from the storage tanks from time to time 
257 
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258 
SUPREME COURT REPORTS 
[2003] 2 S.C.R. 
7~ 
A as per the requirements of its customers. Subsequently 
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the rate of duty leviable on the goods was enhanced. The 
appellant issued show cause notice to the respondent 
for charging the enhanced rate of duty. The Commissioner 
of Customs upheld the assessment detailed in the show 
B cause notice. In appeal, the tribunal held that any 
subsequent enhancement of the rate of duty could not 
be levied on such goods. Hence the present appeal. 
:t 
Dismissing the appeals, the Court 
c 
HELD: 1.1 Section 15(1) of the Customs Act, 1962 
provides for the date for determination of rate of duty and 
tariff valuation of imported goods. Where the imported 
goods are allowed to be warehoused under Section 68 of 
... 
the Act and are subsequently cleared from the warehouse, 
D section 15(1 )(b) provides that the rate as applicable on 
the date of actual removal of the goods from the 
warehouse, is applicable. But where the goods are cleared 
for home consumption under section 46, section 15(1 )(a) 
~+--
provides that the duty payable would be on the date on 
which the bill of entry in respect of such goods is 
E presented. On the fulfilling of the requirements of section 
68, section 15(1)(b) would cease to operate. [Paras 14, 20 
,.
and 21] [265-F; 268-G; 269-F] 
1.2 Section 49 provides that in the case of imported 
..._ 
F goods, whether dutiable or not, which have been cleared 
for home consumption on an application filed by the 
)..... 
importer, the Assistant Commissioner of Customs or tile 
Deputy Commissioner of Customs, on being satisfied that 
the goods cannot be cleared within a reasonable time, 
may permit the storage of such goods in a public 
G warehouse, or in a private warehouse if facilities for 
deposit in a public warehouse is not available and such 
)-
goods shall not be deemed to be warehoused goods for 
the purposes of the Act and, accordingly, the pr9visions 
of Chapter IX would not apply to such goods: Section 68 
H falls in Chapter IX. Section 15(1 )(b) expressly refers to the 
-+ COMMISSIONER OF CUSTOMS, CALCUTIA & ANOTHER 
259 
v. BIECCO LAWRIE LTD. [BHAN, J.] 
--.,. 
clearance from the warehouse under section 68 and the A 
same would not be applicable to the instant case. [Para 
14] [266-C, D, E, F] 
1.3 Section 15(1) provides for the rate of duty and 
tariff valuation applicable to any 'imported goods'. The B 
term 'imported goods' is defined in Section 2(25) of the 
Act to mean any goods brought into India from a place 
J. 
outside India, but does not include goods, which have 
been cleared for home consumption. [Para 15] [266-F, G] 
2.1 In the instant case, the imported goods had been c 
cleared for home consumpti

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