P. Karthikeyan, Member (T) - (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:
14. Valuation of goods for purposes of assessment. - (1) For the purposes of the Customs Tariff Act, 1975 (51 of 1975), or any other law for the time being in force whereunder a duty of customs is chargeable on any goods by reference to their value, the value of such goods shall be deemed to be the price at which such or like goods are ordinarily sold, or offered for sale, for delivery at the time and place of importation or exportation, as the case may be, in the course of international trade, where -

(a) the seller and the buyer have no interest in the business of each other; or

(b) one of them has no interest in the business of the other, and the price is the sole consideration for the sale or offer for sale Provided that such price shall be calculated with reference to the rate of exchange as in force on the date on which a bill of entry is presented under Section 46, or a shipping bill or bill of export, as the case may be, is presented under Section 50;

(2) Notwithstanding anything contained in Sub -section (1) [or Sub -section (1A)], if the [Board] is satisfied that it is necessary or expedient so to do it may, by notification in the Official Gazette, fix tariff values for any class of imported goods or export goods, having regard to the trend of value of such or like goods, and where any such tariff values are fixed, the duty shall be chargeable with reference to such tariff value.

In this case, the Bill of Entry was filed by the assessee on 22.1.2004 for Warehousing. The proviso to Section 14 mandates that the rate of exchange applicable for valuation will be the rate prevailing on the date on which the Bill of Entry is presented under Section 46. The assessee had followed a wrong valuation in the ex -bond Bills of Entry following Public Notice No. 20/2004 dated 3.2.2004. This Public Notice at Sl. No. 6 under the heading 'Imports' had prescribed a procedure contrary to the statutory provision contained in the Act and laid down that the rate of exchange for ex -bond Bills of Entry where tariff duty was leviable would be the rate 'as on the ex -bond Bills of Entry'.