Imported goods not to be unloaded from vessel until entry inwards granted

Related judgements & precedents

These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.

1. Commr. of Customs vs Sayed Ali

   Supreme Court of India 18 Feb 2011 Binding (SC) Reportable

   Court's Decision & Legal Precedent

   A proper officer under Section 2(34) of the Customs Act, 1962, is only such a customs officer who has been assigned the specific functions of assessment and reassessment of duty by the Board or Commissioner of Customs. Mere appointment as an officer of Customs with territorial jurisdiction over a port is insufficient to confer proper officer status. Accordingly, a show cause notice under Section 28 of the Act for reassessment of goods cleared for home consumption can only be issued by the officer assigned assessment functions in the jurisdictional area where the bill of entry was filed and the goods were cleared, not by any other officer even if he has territorial jurisdiction over that area. In the present case, since the Commissioner of Customs (Preventive), Mumbai, was never assigned the specific function of assessment or reassessment of goods entered for home consumption under Section 28, he was not competent to issue the show cause notice, notwithstanding his territorial jurisdiction.

   On this section: Grant of entry inwards order by proper officer (Imports); further demonstrates proper officer's jurisdictional role in import process.

   Read the full order on eCourts India

2. Aban Offshore LTD vs Commnr. of Customs (import)

   Supreme Court of India 02 Feb 2017 Binding (Supreme Court) Reportable

   Court's Decision & Legal Precedent

   A foreign-going vessel which enters Indian territorial waters temporarily for the purpose of undergoing repairs and which is subsequently removed from Indian territorial waters does not constitute goods imported into India for home consumption merely by reason of such entry and repair. The completion of the act of importation requires not only that the goods enter Indian territorial waters, but also that they satisfy the requirement of being intended for primary use in India (home consumption). Mere repair of a vessel does not constitute putting the vessel to use or utility in India, and therefore does not satisfy the home consumption requirement. Consequently, customs duty is not chargeable on a foreign-going vessel that enters Indian territorial waters solely for repair purposes, despite such entry technically constituting the commencement of importation. However, foreign-going vessels remain subject to the procedural and regulatory compliance requirements of the Customs Act upon entering Indian territorial waters, and violation of these procedural provisions (such as failure to file appropriate documents or deliver import manifests) remains actionable even absent the completion of import.

   On this section: Prohibits unloading without proper orders. Court applied this to establish procedural violations regarding unloading of the rig.

   Read the full order on eCourts India

The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.