Home Case Index All Cases Customs Customs + AT Customs - 2023 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (10) TMI 963 - CESTAT AHMEDABADValuation - inclusion of ship demurrage charges paid by the respondent to the owner of the vessel/ ship in which the goods are imported on account of vessel/ ship having to wait at the Port in the Transaction value of the imported goods - entire case based on explanation added to Rule 10 of Custom Valuation Rules, 2002 - HELD THAT:- The very same issue has been considered by the Hon’ble Orissa High Court in the case of Tata Steel Limited [2019 (10) TMI 226 - ORISSA HIGH COURT] wherein the Hon’ble Court has held that the contentions raised by the petitioner that the relevant provisions in the Principal Act is silent about the ‘demurrage’; thus, it was beyond the legislative power to include it in the Rules is accepted and thus the explanation to sub-rule-(2) of Rule 10 of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 is held to be bad and hence declared ultra vires the Constitution/provision of Section 14 of the Customs Act, 1962, and hence the same is struck down. From the above order, it is settled that the demurrage charges cannot be included in the transaction value of imported goods. The entire case of the Revenue is that as per the explanation added to Rule 10 of Custom Valuation Rules, 2002, the cost of transportation of imported goods should be included in the transaction value - HELD THAT:- This Provision was not provided in the Customs Act, 1962 with regard to the Valuation of goods. However the same was brought under the rule by way of explanation. The Hon’ble Orissa High Court in above case has held that the said provision in the Rule is ultra virus to the Customs Act, 1962. Therefore, when the explanation to Rule 10 to Customs Valuation Rules was held ultra virus, the entire basis of the Revenue case falls. The impugned order passed by the learned Commissioner is just and proper and the same does not suffer from any infirmity - Accordingly, the same is upheld and Revenue’s appeal is dismissed.
|