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2018 (4) TMI 785

tion Limited Versus CC, New Delhi [2017 (9) TMI 926 - CESTAT NEW DELHI], where it was held that The fuel in the tank is part of aircraft in operation. Fuel cost is calculated, and apparently, forms part of commercial consideration while fixing ticket charges for transporting aircraft. No freight element is attributable to fuel in the tank, the usage of which varies on different parameters - customs duty cannot be levied - appeal allowed - decided in favor of appellant. - Custom Appeal No. 50002 of 2018 - Final Order No. 51343/2018 - Dated:- 10-4-2018 - Mr. Justice (Dr.) Satish Chandra, President And Mr. V. Padmanabhan, Member (Technical) Sh. Manoj Arora & Sh. Sidharth Shankar, Advocates for the appellant Sh. A. K. Singh, AR for the resp .....

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its valuation, more specifically, addition of freight element on notional basis to arrive at the value of such ATF is in dispute. The Original Authority held that the remnant ATF is transported by the aircraft and as such, as the actual freight is not ascertainable, a notional freight in terms of Rule 10(2) is to be added to arrive at the assessable value of ATF. We note that the aircraft requires ATF for its propulsion. As per the Civil Aviation 6 Regulating requirements and also for safety, aircraft caries adequate amount of fuel in its flight. The consumption of fuel depends on various factors. Factually, when the aircraft completes the inward journey to reach the Indian Airport, certain quantity of fuel is left in the tanks. We are not .....

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(2). 8. The Hon ble Supreme Court in Wipro Ltd. (2015) 14 SCC 161, held that normally, the value of imported goods has to be the transactional value which means the price actually paid or payable for the goods imported. When the value of transaction could not be determined then the Rules are applied to arrive at 7 the value. The endevour is to have closest proximity with the actual price. Dealing with addition of loading and handling charges at 1% on notional basis as per Rule 9 of Valuation Rules, the Apex Court held that when the actual cost towards handling charges are available, notional addition is not legally tenable. It was held to be violative of Article 14 of the Constitution. In the present case, there is no freight involved with .....

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ellant is held liable for penalty. There are different types of infringements listed under the section. We note that the Original 8 Authority concluded that by not following the proper procedure and not calculating the customs duty properly, the appellant evaded customs duty. We find such observation is not legally sustainable in the facts of the case, as discussed above. The procedure followed by the appellant and regularly intimated to the Department has not been varied by the Revenue. No loss of revenue has been alleged except for non-addition of notional fright in the value of ATF. As we have held above, such notional additional is not legally sustainable. In view of these observations, we find there is no sustainable reason for imposin .....

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