9911796707
TMI Blog2021 (12) TMI 971X X X X Extracts X X X X X X X X Extracts X X X X ..... oner of Customs (Airport), Mumbai in order-in-original no. Commr/VRM / ADJN/04/2017-18 dated 2nd May 2017 that fuel on board aircraft returning to India on completion of international leg is liable to duty of customs on the determined cost to which insurance, freight and landing charges are to be added. According to the appellant, they had been discharging duty liability on the loaded value from September 2004 and had, in addition, been availing the benefit of notification no. 151/194-Cus dated 13th September 1994 and that the dispute in the proceedings now before us pertains to the period from 1st April 2010 to 15th October 2014. 2. There are two aspects of this dispute that are contextual and must, therefore, bear narration even at the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... version for international run was to be excluded from the computation subject to documentary evidence being furnished. 3. This special procedure is warranted owing to the peculiar nature of air transportation and the safety standards prescribed for such operations. It is inconceivable that a commercial airliner can refuel while in the air or that, akin to road vehicles, can remain stationary till 'top up' fuel is made available from the nearest supply point in the event of emptying of tanks. Conventionally, aircraft are required to carry sufficient fuel for arrival at intended destination and, as a safety precaution, also to be able to land at an alternative destination. Needless to say, these are all estimates with the actual consumption ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble value. Assessment of duty rests upon determination of the rate of duty and appraisal of value. The latter, in terms of section 14 of Customs Act, 1962, is the 'transaction value'; to qualify as 'transaction value', the declared value must necessarily be compliant with the description in section 14 of Customs Act 1962 and, to the extent that it does not, the Rules framed thereunder by the Central Government offer alternatives in the form of 'transaction values' of 'identical' and 'similar goods'. Should these not be available, other methods of valuation are enabled. This dichotomy of 'transaction value' and others is of particular relevance for the invoking of rule 10 of Customs Valuation (Determination of Value of Imported Goods) Rules, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l in India after 'foreign run' and the claim of eligibility to set off the fuel available on board upon conversion to 'foreign run' before departure from India was raised for the first time in the course of proceedings for recovery of duties of customs over and above that discharged by the appellant herein. Neither has any claim for refund of this component of the duties been filed nor is there any demand of duty following denial of the benefit of the set off provided in notification no. 151/1994-Cus dated 13th July 1994. It would, therefore, appear that this was a plea for mitigation in the event of the enhancement of the assessable value of fuel on which duty had already been discharged in accordance with the extant instructions. Conseque ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
