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2018 (10) TMI 412 - AT - CustomsValuation of imported goods - Cold Rolled Steel Sheet - inclusion of C & F value in assessable value - bifurcation of said value in two components i.e. Free on Board (F.O.B.) and Air Freight - proviso to 10 (2) Rule of Customs Valuation Rules - Department formed a view that since the goods have been imported by air, hence, the airfreight amount should have been 20% of FOB value even for those invoices where the C & F value does not show any bifurcation, the proviso to Rule 10 (2) of Customs Valuation Rules, has been impressed upon while issuing the impugned show cause notice. Whether the appellant was to discharge the liability on the said C & F amount only? Whether the freight irrespective mentioned separately or not, should be considered at the rate of 20% of FOB value while discharging the liability? Held that:- Bare perusal of these provisions makes it clear that the value of imported goods shall be the transaction value of such goods i.e. the price which is actually paid or is payable at the time of import with any other amount as mentioned in the proviso to Section 14 above to be added to the said transaction value. Further perusal of Rule 10(2)(c) (i) it details such costs which have to be included while assessing the cost of transport. Rule 10(2) (c) (iii) makes it clear that such cost has also to include the insurance value of 1.125% of FOB value of the goods. It is an admitted case that the said value has been added by the appellant while computing the cost of transport of imported goods herein. For 36 invoices where there is a clear bifurcation about the amount of air freight involved and that the same has been paid by the supplier and has been included in the C & F value paid by the appellant, the amount is absolutely ascertainable. In such case the amount has not to exceed 20% of FOB value. It is admitted case of Department that the freight is at the rate of 10% / 11.11 % i.e. much less than 20%. No question arises for enhancing this value to the extent of 20%, in view of the words “shall not exceed 20% of freight on board value of goods”. Invoices where there is no bifurcation for air freight but the C & F amount - Held that:- It is observed that the amount paid by the appellant while importing the goods is very much ascertainable. It is an admitted fact of the case that vide all these invoices (81 in No.) appellant have imported the same goods i.e. cold rolled steel sheets, that too, during the same period w.e.f. February 2012 to June 2012. The question of change in the FOB value of the goods does not at all arise. Otherwise also the onus was upon the Department to prove the change if any. There is no such evidence - in the case of invoices of un-bifurcated C&F amount as well, the FOB value of the goods is very much ascertainable. No question arises for enhancing the airfreight to the extent of 20% thereof, for these invoices also. The appellants have been discharging their liability properly and completely in accordance of the mandate of law. It is Department who took a wrong opinion. No positive act of the appellants could be proved by the Department to establish the alleged intention to evade the duty. Otherwise also when there is no case of short levy, as alleged, no question of intention of evasion at all arises. Appeal allowed - decided in favor of appellant.
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