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2014 (4) TMI 658 - CESTAT KOLKATAExclusion from assessable value u/s 14 of the Customs Act - Consideration of FOB price as cum-duty price as it includes the export duty - Held that:- It is not in dispute that the time and place of export referred to u/s 14 are, respectively, the time and place of shipment of the goods - The price of the goods at the time and place of shipment is its FOB price, whether paid or payable - The law declares that this shall be the transaction value for the purpose of levy of export duty - It does not make provision for abatement of duty element from the FOB price so as to arrive at the assessable value for the purpose of levy of export duty - The provisions of Section 14 are clear and free from any ambiguity. Necessity of incidence of duty to be passed on – Held that:- Judgment in Chhotabhai Jethabhai Patel & Co. vs. UOI & Anr.,[1961 (12) TMI 1 - SUPREME COURT OF INDIA] followed - To qualify as Customs (Export) Duty, it is not necessary that the incidence of duty should always be passed on, so as to satisfy the economists principle of Indirect Tax - On the contrary, the present export duty on Iron Ore could have been levied by the legislature to discourage export of Iron Ore from the Country, with an objective to make it unviable for exporters, who ultimately have been intended to be saddled with the levy, instead of passing on the burden to the purchaser – No substance in the plea of the Appellant that FOB price be treated as cum-duty price and not the transaction value, as prescribed under Section 14 of the Customs Act, 1962 - Appeals are rejected – Decided against appellants.
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