2003 (1) TMI 402 - AT - Customs

Summary

Issues:
- Dispute over the valuation of imported Water Extrusion Plant under EPCG Scheme.
- Inclusion of subsequent imports in valuation.
- Addition of landing charges in the valuation.
- Jurisdiction of Commissioner to consider subsequent imports.
- Assessable value under Customs law.

Analysis:
The appeal in this case challenges the Order-in-Original regarding the import of a second-hand Water Extrusion Plant under the EPCG Scheme. The impugned order found the value of the plant to exceed the permitted value under the EPCG License, resulting in a duty demand of Rs. 2,71,022. The appellant contests this valuation, arguing that subsequent imports and landing charges were incorrectly included in the assessment. The appellant asserts that the Commissioner erred by considering subsequent imports not part of the adjudication proceedings. Additionally, the appellant argues against the 1% addition for landing charges, claiming it was unnecessary as the transaction included free delivery at Tughlakabad, covering landing charges.

The learned DR supported the Commissioner's decision to include subsequent imports and landing charges in the valuation, citing that they are relevant under Customs law. However, the Tribunal found merit in the appellant's contentions. The Tribunal noted that the dispute focused solely on the Hydraulic Press import, excluding subsequent batteries import. As the terms of the transaction guaranteed free delivery at Tughlakabad, landing charges were already covered. The Tribunal emphasized that the landing charges were part of the value declared in the Bill of Entry due to the free delivery agreement, rendering the additional charge unjustified.

The Tribunal's analysis highlighted that the valuation of the Hydraulic Press, based on the remand order, would have complied with the EPCG License value. Any discrepancy in the subsequent batteries import should be addressed separately through a notice. Consequently, the duty demand was deemed unsustainable, leading to its dismissal and allowing the appeal. The judgment underscores the importance of accurate valuation in line with the terms of the licensing scheme and the necessity to consider only relevant imports in such assessments, ensuring adherence to legal requirements.