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2023 (12) TMI 446 - AT - CustomsAircraft pertaining to international flights - excess ATF on board - Determination of cost of transportation - Inclusion of cost of transportation of remnant ATF in the IOCL price, on which the Customs duty has been discharged - Rule 10 (2) of the Valuation Rules, 2007 - Confiscation of goods - levy of redemption fine and penalty - HELD THAT:- The issue which is to be decided by us is whether the transportation charges in terms of Rule 10 (b) of the Valuation Rules, 2007, are to be includable in the assessable value or not. The said issue has been examined by the Larger Bench of this Tribunal in the assessee’s own case M/S JET AIRWAYS (INDIA) LIMITED VERSUS COMMISSIONER OF CUSTOMS (I) (AIRPORT) , MUMBAI [2021 (5) TMI 908 - CESTAT MUMBAI (LB)], wherein this Tribunal has held ATF which is filled in the fuel tank of the aircraft is actually required to fly the aircraft and is a consumable for the airlines. It cannot, in such circumstances, be urged that ATF is being transported through the aircraft. A different situation would, however, arise if an oil company specifically imports ATF in large containers/tanker as ‘goods’ or as cargo, for the purpose of selling the same to airlines. There can be no doubt that in such a situation the cost of transportation for import of ATF would have to be included in the transaction value for the purpose of determining the customs duty liability. As the issue has already been settled by the Larger Bench of this Tribunal in the assessee’s own case, therefore, the transportation cost is not to be included in the value of remnant ATF for determining the assessable value in this case. The demand of duty confirmed against the assessee is set aside - As no demand is sustainable, consequently, no penalty is imposable on the assessee - appeal filed by assessee is allowed.
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