Bleak Ltd. imported super kerosene oil (SKO) and stored it in a private warehouse. An ex-bond bill of entry for home consumption was filed and duty was paid as per the rate prevalent on the date of presentation of such b

The facts of the given situation are similar to the case of CC v. Biecco Lawrie Ltd. 2008 (223) ELT 3 (SC) wherein the Supreme Court observed that where the imported goods are allowed to be warehoused under Section 68 of the Act after proper assessment and collection of duty and are subsequently cleared from the warehouse, the rate as applicable on the date of subsequent removal of goods from the warehouse is not applicable. Further, once the assessment is over and duty is collected, the issue is closed forever. Any subsequent change in the rate of duty will not affect the transaction. The Court held that, not only the full duty stands paid by the Company, but also goods have been permitted to be cleared thus, the goods cannot be held to be the warehoused goods. The goods were allowed to be kept in the warehouse only on account of an application made by the Company in terms of the provisions of Section 49 of the Act. The Court also held that where duty on the warehoused goods is paid and out of charge order for home consumption is made by the proper officer in compliance of the provision of section 68, the goods removed in smaller lots have to be treated as cleared for home consumption. The company is not required to pay any differential duty. The question of applicability of provisions of Section 15(1)(b) becomes irrelevant. In the light of Supreme Court's decision, the Company is not liable to pay differential duty.