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Commissioner of Customs, Jamnagar (Prev.) Versus M/s. Indian Oil Corporation Limited

2015 (11) TMI 886 - CESTAT AHMEDABAD

Valuation - inclusion of demurrage charges in the assessable value - Held that:- Larger Bench [2013 (10) TMI 246 - CESTAT AHMEDABAD] was examining the excludability of demurrage charges in the assessable value between two CBEC circulars 14/2001-cus dated 02/2/2001 and 26/2006-cus at 26/9/2006, therefore, the period got mentioned in Para 14 of this order was 02/3/2001 to 26/9/2006. However, the law laid down on excludability of demurrage charges by the Larger Bench was as per Para 12 of the Large .....

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force with effect from 10/10/2007. The period involved in the present appeals is prior to 10/10/2007 as evident from Para 1 of the order dated 18/8/2009 passed by the first appellate authority. In view of the Larger Bench decision of Ahmedabad Bench in the case of CC Jamnagar vs. Grasim Industries Limited (Supra) ship demurrage charges paid by the appellant for the period prior to 10/10/2007 are not includable in the assessable value. - Decided against Revenue. - Appeal No. : C/383/2008 - ORDER .....

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value. He argued that the matter at length and also reiterated the ground of appeal. On the other hand learned Advocate on behalf of the Respondent submits that in identical issue, the Tribunal in their own case by final order No. A/11060-11090/2014 dated 28.05.2014 allowed the appeal filed by the appellants. It is submitted that the Tribunal followed the Larger Bench decision of the Tribunal in the case of Commissioner of Customs, Jamnagar vs. Grasim Industries Limited 2013 (296) ELT 39 (Tri. .....

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p demurrage charges to the assessable should be held to be includable only from the date of implementation of the Customs Valuation (Determination of Value of Imported Goods) Rules 2001 or 29/6/2006 as mentioned in Para 14 of the CESTAT Larger Bench judgment in the case of Commissioner of Customs, Jamnagar vs. Grasim Industries Limited (Supra). Paras 12 and 14 of the Larger Bench judgement are relevant and are reproduced below : 12. In our considered view, the above ratio laid down by the Apex C .....

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rted Goods) Rules, 1988 was clearly impermissible. It is also to be noted that subsequent to the judgment of the Apex Court, the legislature has brought in new Customs (Valuation) Rules, 2007 which provides for inclusion of cost of ship demurrage charges, lighterage and barge charges, in the value of transportation. In the light of the clear provisions, from the date when provisions of Customs (Valuation) Rules, 2007 came into picture, in our view, the ship demurrage charges needs to be included .....

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in the case of Shine Petroleum Pvt. Ltd. and MGM International Exports Ltd. have correctly considered the issue and in view of that, we hold that for the period from 02-3-2001 to 26-9-2006, the ship demurrage charges cannot be included for the discharge of customs duty on the imported goods even if the assessments are made provisionally. 4.1 It is observed that the Larger Bench was examining the excludability of demurrage charges in the assessable value between two CBEC circulars 14/2001-cus dat .....

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