2015 (9) TMI 1773 - SC - Customs

Whether the demurrage charges can form part of assessable value? - HELD THAT - The issue has already been decided in Commissioner of Central Excise Mangalore vs. M/s. Mangalore Refinery Petrochemicals Ltd. 2016 (1) TMI 325 - SUPREME COURT in favour of the assessee thereby confirming the order of the Tribunal holding that The demurrage charges are admittedly incurred after the goods reached at Indian ports and therefore it is a post-importation event. Such charges therefore cannot form part of the transaction value . Appeal dismissed.

Summary

The Supreme Court, through Hon'ble Justices A.K. Sikri and Rohinton Fali Nariman, addressed the issue of whether demurrage charges can form part of the assessable value. The Court relied on its prior decision in C.A. Nos. 2691-2728 of 2009 ("Commissioner of Central Excise, Mangalore vs. M/s. Mangalore Refinery & Petrochemicals Ltd."), where it held in favor of the assessee by confirming the Tribunal's order. Accordingly, the Court dismissed the present appeals, affirming that demurrage charges do not constitute part of the assessable value.