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2018 (5) TMI 569 - AT - CustomsLevy of customs duty on liquid cargo not received in the shore tanks - Valuation - inclusion of demurrage charges - Revenue was of the view that the assessment and valuation of the goods should be based on the transaction value declared in the invoice price irrespective of the quantity ascertained through shore tank measure or in other manner - whether the demurrage charges incurred by the appellant should be included in the assessable value? Held that: - reliance placed in the case of C.C.E., Mangalore Versus Mangalore Refinery & Petrochemicals Ltd. [2016 (1) TMI 325 - SUPREME COURT], where it was held that it is not even necessary to go into the various nuances of the matter as we are of the opinion that these appeals are bound to fail on one simple ground. The assessment is to be made on the basis of quantity of crude oil actually received in the shore tanks in the port of arrival in India. Valuation - inclusion of demurrage charges for the purposes of valuation of crude oil - Held 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 - demurrage charges are not includable in the transaction value of the crude for the purposes of assessment. Appeal allowed - decided in favor of appellant.
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