TMI Blog2008 (4) TMI 106X X X X Extracts X X X X X X X X Extracts X X X X ..... the Appellant. S/Shri R.P. Raheja, JCDR and K. Sambi Reddi, JDR, for the Respondent. [Order per: T.K. Jayaraman, Member (T)]. - The details of the appeals are furnished below.:- Sl. No Name of the Party Differential Duty Penalty Order-in- Original No. Order-in- Appeal No. 1. M/s. MGM International Exports Ltd. Rs.8,70,805/- Rs. 14,74,112/- No. 02/2006 dt. 21-12-2006 No. 72/2007 dt. 28-6-2007 2. Sri Abirami Agencies Rs.1,48,829/- Rs. 1,48,829/- No. 03/2007 dt. 15-1-2007 -do- 3. M/s. Karps Petroleums Pvt. Ltd. Rs.1,44,538/- Rs. 1,44,538/- No. 02/2007 dt. 15-1-2007 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed, Hon'ble Supreme Court had not decided the issue of includability (or) otherwise of demurrage charges in the assessable value under Customs law. The decisions so far being on the applicability (or) otherwise of Board's Circular on the issue. In view of the stated position, the question of applying the ratios of the case laws cited by the appellants did not arise. At present, the views expressed by the Board vide its circular No. 14/2001 dated 2-3-2001 read with Circular dated 20-10-2004 are the correct interpretation of law and the same is binding on the departmental officer in the absence of a contrary view/decision by the Hon'ble Supreme Court." The appellants are highly aggrieved over the issue and that they have come be fore this T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1991. According to the circular. it is stated that "Having regard to the above and the fact that in no other Custom House there was a practice to include or deduct such moneys, it has been decided that 'demurrage' and 'despatch' money may not form a part of assessable value." However in 2001, the Board issued a Circular No. 14/2001 Cus. dated 2-3-2001 wherein it was clarified that "the earlier circular should not be construed as authorizing the exclusion of any ship demurrage charges paid which are required to be included in the assessable value of the goods under Section 14 of the Customs Act, 1962 by virtue of Rule 9(2) of the Customs (Valuation) Rules, 1988." It was stated in the above said circular that the earlier letter dated 14-8-199 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... udability of ship demurrage charges in the assessable value-decision taken in the Chief Commissioners of Customs Conference on Valuation held at Mumbai on 1-10-2005 and Board meeting dated 28-11-2005. Attention is invited to the Board letter issued vide F. No. 467/1/2002-Cus. V, dated 20th October 2004 (copy enclosed) [Not printed] on the above subject, wherein, it was conveyed that in light of the decision of the Board to file review petition before the Supreme Court of India, in the case of M/s. Indian Oil Corporation [2004 (165) E.L.T. 257 (S.C.)], all importation prior to 2-3-2001 may be kept provisional. 2. Now, in view of the Department's Review Petition in the case of Commissioner of Customs, Calcutta v. Indian Oil Corpor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e GATT Valuation Code but the issue is highly debatable as the learned departmental representative referred to certain other decisions of other country's wherein it has been held that demurrage is only extended freight. However, the present legal position is that demurrage is to be added to the cost of transportation by virtue of an amendment in the Customs Valuation Rules. In any case, since the amendment is only of recent origin, for the relevant period, we cannot hold demurrage would be includable in view of the Supreme Court's decision which affirmed the Tribunal decision in the IOC case. Even though the Supreme Court had not gone into the merit of the case, it had not set aside the finding of the Tribunal in the IOC case. In fact the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
