Appeal No.C/549,550/2011-DB, [Arising out of OIA No.47-94/COMMR-A/JMN/2011, dt.25.08.2011, passed by Commissioner of Customs (Appeals), Jamnagar]. Case: Commissioner of Customs (Preventive), Jamnagar Vs Ms. Reliance Industries Ltd. CEGAT (Customs, Excise & Gold (Control) Appellate Tribunal) & CESTAT (Customs, Excise and Service Tax Appellate Tribunal)
| Case Number | Appeal No.C/549,550/2011-DB, [Arising out of OIA No.47-94/COMMR-A/JMN/2011, dt.25.08.2011, passed by Commissioner of Customs (Appeals), Jamnagar] |
| Counsel | For Appellant: Shri L. Patra, A.R. and For Respondent: Shri J.C. Patel, Advocate |
| Judges | Dr. D.M. Misra, Member (Judicial) and Mr. Ashok K. Arya, Member (Technical) |
| Issue | Customs Valuation Rules, 2007 - Rule 10(2)(b) |
| Judgement Date | May 12, 2017 |
| Court | CEGAT (Customs, Excise & Gold (Control) Appellate Tribunal) & CESTAT (Customs, Excise and Service Tax Appellate Tribunal) |
Order:
Ashok K. Arya, (West Zonal Bench At Ahmedabad)
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Revenue [Commissioner of Customs (Prev.) Jamnagar] is in appeal against OIA No.47-94/COMMR-A/JMN/2011, dt.25.08.2011 passed by Commissioner of Customs (Appeals), Jamnagar, whereunder Pull Buck Tug Charges, Tug/Launch Charges, and Port Tonnage Charges have been held as the charges which are not to be included in the assessable value under Rule 10(2) (b) of Customs Valuation Rules, 2007, when 10% landing charges already included in the assessable value.
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The brief facts are that:
i) The respondent viz. M/s Reliance Industries Ltd (M/s RIL) imported various consignments of petroleum crude oil for which Bills of Entry were assessed provisionally under the provisions of Section 18(1) of Customs Act, 1962, for want of certain documents like final invoice, original Bill of Lading, freight, insurance, test report etc.
ii) At the time of final assessment, original documents in respect of (a) Pull Buck Tug Chages, (b) Tug/Launch charges and (iii) Port Tonnage Charges were not provided by the Respondent.
iii) The Assistant Commissioner, vide his OIO No.03/AC/CHS/2011, dt.23.03.2011, inter alia, held that Pull Buck Charges, Tug/Launch Charges, Port Tonnage Charges are to be included in the assessable value for the purpose of final assessment of Bill of Entry and the same does not get covered under -- Landing Charges-- which are added @ 1% of CIF value to arrive at the assessable value.
iv) The respondent M/s RIL went in appeal before Commissioner (Appeals) who decided vide the impugned order that such charges over and above landing charges @ 1% of CIF value, which have already been included to arrive at the assessable value of the imported goods for the purpose of assessment of Customs duty, cannot be included in the assessable value.
v) Therefore, the Revenue is in appeal before the Tribunal.
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With the background of above facts, both sides represented by learned counsels, Shri L. Patra for the Revenue and Shri J.C. Patel, for the Respondent, have been heard.
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After going through the facts on record and the submissions of both the sides, it appears that the matter is covered by the judgment of Hon'ble Supreme Court in the case of Coromandal Fertilzers Ltd Vs Collector of Customs - 2000 (115) ELT 7 (SC). The Hon'ble Apex Court in the said case observes as under:-
-- 7. -- Landing charges-- are exactly what the words? mean, the expenditure incurred by an importer for bringing goods on board...
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