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2019 (11) TMI 194

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..... o clause appended to Section 14 ibid mandates that the transaction value in the case of imported goods shall include inter alia, cost of transportation to the place of importation. The said statutory provision nowhere provides that only the freight paid by the importer should be included in the transaction value. Thus, in absence of any specific mention about the person required to pay the freight component, such amount paid by the overseas supplier should also be considered as part of transaction value for the purpose of determination of duty liability. The rejection of the declared value and re-determination of the same in terms of Rule 10(2) ibid by the original authority is in conformity with the statutory provisions - However, consider .....

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..... DEEC scheme, whereas the pre-paid freight amount shown in the HAWB No. 50520123 dated 20.08.2012 was for USD 3,821.51 (equivalent to ₹ 2,13,813/-). Since such freight amount reflected in the Airway Bill was almost half of the declared CIF value i.e. USD 8,000/- (equivalent to ₹ 4,47,600/-), the appellant was called upon to explain the discrepancy. Pursuant to the query raised by the Department, the appellant vide its letter dated 25.08.2012 had explained that there was delay in shipment and as such, the shipper had agreed to bear the freight charges and they were only required to pay the invoice value. Such explanation furnished by the appellant was not accepted by the Department and accordingly, show cause proceedings were init .....

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..... hould not be added to such value for determination of the duty liability. 4. On the other hand, the learned AR appearing for Revenue submitted that the case of the appellant squarely falls under the proviso to Section 14 ibid and the freight paid by the shipper should be included in the transaction value for computation of the duty liability. 5. Heard both sides and perused the records. 6. In this case, out of the quantity of 10 MT of subject goods, the overseas supplier had supplied 9 MT by sea on 17.08.2012 and since was not complied with the requirement of the purchaser order was not complied with, it had sent the remaining 1 MT by air and the freight was also paid by the supplier. In context with the valuation of imported goods, the pro .....

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