TMI Blog2001 (5) TMI 465X X X X Extracts X X X X X X X X Extracts X X X X ..... or the purchase of the said Pellets . 2. The consequential refund, arising out of the valuation of the goods, purchased from an 100% E.O.U., was rejected by the Assistant Collector, as it was found that Port Charges were clearly indicated in the contract between buyers and sellers amounting to Rs. 18/- per M.T. M/s. Kudremukh Iron Ore Co. Ltd. had given a break up of the same to be towards - (i) Engineering expenses (ii) Port dredging expenses (iii) Port Management and Secretarial expenses; and (iv) Medical and Welfare expenses. However, no evidence was supplied about the amounts, for the services provided by the Port, in order to facilitate loading of the cargo, which would come under the head Handling Charge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ec. 14 of the Customs Act, 1962 read with Rule 8 of the Customs Valuation Rules, 1988 by giving due adjustments as per the provisions contained in Rule 9 thereof. While arriving at the imported value all the expenses which are incurred till the goods are placed on the ship will have to be included in the value. The port charges being paid to the post authorities at the time of loading of the goods into the ship, therefore, will have to form part of the price. In fact Rule 9(2) (b) of the Customs Valuation Rules, 1988 provides for adding, loading, unloading, and handling charges associated with the delivery of the imported goods at the place of importation in determining the value. Accordingly, I find that the Asst. Collector is correct in d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t s contention that the factory gate at Mangalore has to be adopted as the place of importation. (viii) The value has to be determined as if these are imported goods taking into account all the expenses that are incurred till the goods are imported which would be FOB price (inclusive of all expenses including port charges, handling charges and the like by whatever name they are called till the goods are loaded into the ship) and the insurance and freight. Port charges cannot be taken as post importation charges, because an exporter would include all such costs into the price. (ix) All the expenses incurred till the goods are loaded into the ship will have to form part of the cost of the goods. From the appellant s own admission in p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the Customs Tariff Act, 1975 (51 of 1975). Therefore, the value of tariff classification will have to be done as per the provisions of Customs Act, 1962 and the Customs Tariff Act, 1975. (b) We find, that the price of imported goods has to be determined, in respect of import of those goods for delivery at the time and place of importation. The word delivery would necessarily mean the point of time when the goods can be physically delivered to the importer. In the case of Garden Silk Mills Ltd. - 1999 (113) E.L.T. 358 (S.C.), the Apex Court has held 13 .Section 14 of the Act provides that the value of the goods shall be deemed to be the price of goods for the delivery at the time and place of importation . Therefore, ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... had considered the goods being put on a conveyor belonging to the factory and that would not indicate to mean the factory gate, to be limited to actual physical factory gate. However, the learned Commissioner, has not given any finding on this important aspect in this case. Therefore, the matter is required to be remanded back to the Commissioner (Appeals) for determining the same. (d) We find, that the learned JDR has submitted the charge of Rs. 18/- per M.T. to be cost of loading and unloading as found by the Assistant Collector. However, we do not find the said cost be so established, as there is no material to find it to be so. In fact, the Commissioner (Appeals) has found the same to be Port Charges paid to the Port Authority at ..... X X X X Extracts X X X X X X X X Extracts X X X X
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