Charging Section:

The provisions relating to charge of duties of customs are contained in Section 12 of the Customs Act, 1962. Section 12 makes it clear that import or exports of goods into or out of India is the taxable event for payment of the duty of customs.

The Supreme Court of India has given a landmark judgement in case of Union of India v. Apar Industries Ltd. (1999) and further in case of Garden Silk Mills Ltd.  v. Union of India (1999).The Court says that the imports of goods will commence when they cross the territorial waters but continues and is completed when they become part of the mass of goods within the country of import ,and the taxable event being reached at the time when goods reach the customs barriers and bill of entry for home consumption is filed .

The rate at which duty of customs is to be levied is specified in the Customs Tariff Act,1975 or any other law for the time being in force.