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2023 (11) TMI 783 - AT - CustomsValuation - Aviation Turbine Fuel (ATF) remained on board - conversion into domestic flight - Methodology adopted in computing assessable value on fuels - loading of the prices with 1% landing charges - 20% transportation cost - 1.125% of insurance - to be included to the transaction value for re-determining the duty liability or not - HELD THAT:- The Larger Bench in the case of Jet Airways [2021 (5) TMI 908 - CESTAT MUMBAI (LB)] held that No amount towards alleged transportation cost is required to be included in the value of remnant ATF under Rule 10(2) of the 2007 Rules for determining the transaction value under Section 14(1) of the Customs Act. Therefore, the notional value of transportation under proviso to Rule 10(2) of the Customs Valuation Rules, 2007 cannot be added to the transaction value. Based on the above observation of the Larger Bench of the Tribunal, Tribunal in the case of JET AIRWAYS (INDIA) LTD. VERSUS COMMISSIONER OF CUSTOMS (AIRPORT) , MUMBAI [2021 (12) TMI 971 - CESTAT MUMBAI] observed that in the transaction value, methods of valuation, these costs are irrelevant and extraneous and accordingly, held that the transaction value excludes the scope for addition of freight, insurance and landing charges to the cost of supply for discharge of duty liability on the fuel available on board upon conclusion of an international leg. Thus, going by the reasoning for not adding the transportation charges, it is obvious that none of these charges can become part of transaction value as per Rule 10(2) of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007. This issue is no more res integra as it is settled in favour of the appellants in the case of Jet Airways India. The impugned order set aside - appeal allowed.
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