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TMI Blog2023 (10) TMI 756X X X X Extracts X X X X X X X X Extracts X X X X ..... pletion of discharge, the vessel was converted from 'foreign run' to 'coastal run' for carriage of coastal cargo viz. Thermal Coal from Paradip port to Mundra Port. On completion of conversion formalities, a B/E No. 245 dated 27.11.2012 was filed for payment of duty on Bunkers, Provisions and Stores likely to be consumed during her coastal run from Paradip to Mundhra Port carrying Thermal Coal. This was required since during the coastal run, the vessel would not be a 'Foreign going Vessel' under section 2(21) of the Customs Act, 1962 and whatever is consumed during the coastal run would have to be treated as 'import' under section 2(21) of the said Act.. Duty is leviable on the same in terms of Circular No. 58/97-CUS dated 06.11.1997 it mak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ifically excludes the selling price in India of the goods produced in India and/or the price of goods for the export to a country other than India. Thus, taking the IOCL Price in the instant case cannot be the basis of valuation of imported goods under Customs Valuation Rules. The only remaining alternative is 'valuation of impugned fuel oil (FO) and diesel oil (DO) by the 'Residual Method' under Rule 9(1) ibid, which provides for determination of value using reasonable means consistent with the principles and general provisions of these Rules and on the basis of data available in India. Thus, contemporaneous import value which may be available in NIDB is the appropriate basis for valuation of the impugned goods in the present case. However ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 6. The said issued is also settled in favour of the Appellant in the following judgments:- M/s. Sical Logistics Ltd. v CCEx, Cus &STax, BBSR-I [Order No. MO/75030/2019 & FO/75076/2019] CC(Airport & Admin), Kolkata v M/s. Jet Airways [Order No. 77008- 77010/2019] 7. These decisions are also in line with Facility Notice No. 02/2023 dated 10.08.2023 issued by the concerned CC (Prev), Bhubaneswar. Under these circumstances, the Appellant prayed that their appeal be allowed with direction to the assessing officer to re-assess the impugned B/E on the basis of NIDB data in line with Orders-in-Appeal of CC(A), Bhubaneswar No. 112-159/CUS/CCP/2021 dated 16.12.2021. The Appellant submits that relief by way of refund of excess amount paid al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the assessable value for the purpose of charging duty on the Fuel Oil and Diesel Oil used by the vessel during its coastal run. We observe that this method of valuation is supported by the decision of the Tribunal in the case of SICAL Logistics Ltd. Vs Commr. of CCE, Bhubaneswar-I, reported in 2019 (369) ELT 1104 (Tri- Kolkata),.The relevant para of the decision is reproduced below: "8. The dispute on valuation has arisen in respect of value to be adopted for the purposes of payment of Customs duty on the bunker, which remains in the vessels at the time of its conversion from foreign run to coastal run. In the absence of any transaction value, the Customs authorities proceeded to determine the value to be adopted for such payment of Cus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7. Deductive value. - (1) Subject to the provisions of Rule 3 of these rules, if the goods being valued or identical or similar imported goods are sold in India, in the condition as imported at or about the time at which the declaration for determination of value is presented, the value of imported goods shall be based on the unit price at which the imported goods or identical or similar imported goods are sold in the greatest aggregate quantity to persons who are not related to the sellers in India, subject to the following deductions :- (i) Either the commission usually paid or agreed to be paid or the additions usually made for profits and general expenses in connection with sales in India of imported goods of the same class or kind. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y Kolkata, Haldia and Paradeep. The appellant has stated that the IOC prices are adopted for assessment of bunkers at other ports as a matter of practice it has submitted a few evidences to this effect. It is obvious that the price mentioned in the said IOCL price list is the price at which bunkers are supplied at these locations in India, in fact, it also includes local charges levied in India such as entry tax, delivery charge, State entry tax, sales tax, etc. It also includes barge charges at different Indian Ports, wherever applicable. Therefore, to presume that the prices specified in the said price list do not include freight and insurance charges for its first importation into India and therefore, needs to be loaded for such notional ..... X X X X Extracts X X X X X X X X Extracts X X X X
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