- (1.) Between 1994 and 1999, M/s. Indian Oil Corporation Ltd., the respondent herein, imported various petroleum products and crude oil into India. These goods were carried to different ports in India by vessels chartered for this purpose. Throughout this period, the respondent had cleared the imported goods upon payment of customs duty without protest by the custom authorities.
(2.) On 15th March, 2000, the respondent received a show cause notice sent by the Commissioner of Customs, Calcutta, the appellant before us, alleging that the respondent had wilfully mis-declared the value of the goods while making entries under Section 46 of the Customs Act, 1962 by deliberately suppressing that the demurrage charges had been paid to the ship owners under the charter party agreements. Since, according to the show cause notice payment for the demurrage had been made through the negotiating bank, the bank charges and the demurrage paid were includible in the customs value of the goods. On this basis, the assessable value was alleged to be Rs. 6026,05,71,604/-. The respondent was therefore asked to show cause why extra duty to the tune of Rs. 9,75,98,31,199/- should not be realised and why penalty should not be levied against the respondent and its officers.
(3.) According to the respondent, the 17th to 20th March, 2000 were holidays. On 21st March, the respondent asked for time to file a written reply to the show cause notice. This was rejected by the appellant and the demand was confirmed on 30th March, 2000. Penalty equivalent to the amount of the duty determined was also levied. In addition, interest @ 20 per cent. per annum was imposed.;