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2017 (9) TMI 1786 - Commission - CustomsValuation of imported goods - Coal and Petcoke - inclusion of elements of freight in the assessable value - demurrage charges - applicant had not brought to the notice of Customs certain elements of cost, i.e., amount paid towards ship demurrage charges in addition to actual freight which should have been taken into account for arriving at assessable value - Section 14 of the Customs Act, 1962 read with Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 - applicant accepted the tax liability in the SCN dated 7-10-2016 and has paid an amount of ₹ 21,42,012/- (which included an amount of ₹ 2,00,874/- paid voluntarily by the applicant) as confirmed by the Revenue. The interest liability of ₹ 7,94,604/- was also paid before issue of the SCN - applicability of Rule 10 of the Customs Valuation Rules, 2007. Held that:- The Bench is of the view that the applicant has made full and complete disclosure of the duty liability, co-operated with the investigation and discharged their duty liability along with interest. Accordingly, the Bench considers it as a fit case to settle the differential duty liability at ₹ 21,42,012/- as admitted by the applicant along with interest amounting to ₹ 7,94,604/-. This amount has been fully paid and the same is appropriated and adjusted towards the Customs duty and interest. Redemption fine - Held that:- he amount paid subsequently to the exporter as differential freight on account of demurrage charges was not brought to the notice of the Customs leading to the short collection of Customs duty, attracting the Provisions of Section 111(m) of the Customs Act, 1962. Therefore, the Bench holds that the goods are liable for confiscation. However, as the goods had not been seized at any point of time in this case imposing any fine on the goods in lieu of confiscation does not arise. Penalty - Held that:- This is a case where the applicant failed to declare ship demurrage charges, which should have been taken into account for arriving at assessable value for the purpose of charging Customs duty as per the provisions of Section 14 of the Customs Act, 1962 read with Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 - It is also brought to the notice of the Bench that out of the amount of ₹ 21,42,012/- paid towards differential Customs duty on ship demurrage charges/Lighterage, etc. an amount of ₹ 2,00,874/- pertaining to the Bill of Entry dated 16-7-2010, lay outside the statutory limit of 5 years for raising the demand. The applicant has not contested the demand though it is barred by limitation of time - The payment of differential duty to the tune of ₹ 2,00,874/- and interest thereon in respect of the imports made in July, 2010, i.e. the period beyond five years from the date of issue of the SCN amply establishes bona fides of the applicant in discharging duty liability - the Bench is inclined to take a lenient view and refrains from imposing any penalty on the applicant. The Bench is inclined to consider grant of immunity from prosecution to the Applicant in as far as this case is concerned.
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