Home Case Index All Cases Customs Customs + AT Customs - 2023 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (10) TMI 756 - AT - CustomsValuation of imported goods - fuel oil (FO) and diesel oil (DO) used during the coastal run of the vessel - vessel converted from ‘foreign run’ to ‘coastal run’ for carriage of coastal cargo - consumption during coastal run to be treated as import or not - inclusion of the elements freight, insurance and handling charges in the assessable value. Whether the value should be on the basis of contemporaneous import value or on IOCL sale price to bunkers to vessel plus notional freight, insurance and loading & landing charges? HELD THAT:- When IOCL sells the goods the elements of freight and insurance are already added. Hence, these elements need not be added again to arrive the assessable value for the purpose of charging duty on the Fuel Oil and Diesel Oil used by the vessel during its coastal run - this method of valuation is supported by the decision of the Tribunal in the case of M/S SICAL LOGISTICS LTD. VERSUS CCEX, CUS. & S. TAX, BBSR I [2019 (2) TMI 777 - CESTAT KOLKATA]. The method of valuation of the Revenue is not proper. The elements of freight and insurance and Landing charges need not be added again as the same have already been included in the selling price of IOCL. Accordingly, the assessable value is to be re-determined based on the selling price of IOCL, without including freight, insurance and landing charges. Excess payment of customs duty, if any, needs to be refunded to the Appellant along with interest. Appeal allowed.
|