2005 (2) TMI 653 - AT - Customs

Summary

Issues:
- Interpretation of "landed value" under Customs Notification No. 44/99 and No. 16/99
- Inclusion of all duties of Customs in the assessable value for determining landed value
- Treatment of Surcharge as a duty of Customs
- Liability of Anti-Dumping Duty (ADD) and Countervailing Duty (CVD) on imported goods
- Applicability of Customs duty exemptions under Notification No. 31/97
- Compatibility of interpretation with the decision in Puneet Resins Ltd. v. Designated Authority

Analysis:

The judgment by the Appellate Tribunal CESTAT, CHENNAI involved appeals by the Department against orders of the Commissioner of Customs (Appeals) regarding the determination of "landed value" for Citric Acid and Potassium Permanganate imported from China under Customs Notification No. 44/99 and No. 16/99. The Commissioner interpreted the "landed value" to include all Customs duties, irrespective of any exemption Notification, and considered Surcharge as a duty of Customs. This interpretation led to demands for Anti-Dumping Duty (ADD) and Countervailing Duty (CVD) on the importers.

In the case of Citric Acid, the importer claimed duty-free clearance under Notification No. 31/97 but was later charged ADD based on a different calculation of the landed value. Similarly, in the Potassium Permanganate case, demands for ADD and CVD were raised despite the importer claiming DEEC benefit under Notification No. 31/97. The original authority confirmed these demands, leading to appeals by the importers.

The Appellate Tribunal, after hearing both sides, referred to the decision in Puneet Resins Ltd. v. Designated Authority, which stated that Customs duty exemptions should not be added to the assessable value for determining the landed value. The Tribunal upheld this view, emphasizing that only duties actually collected should be included in the computation of landed value. Consequently, the Tribunal found the interpretation by the Commissioner not compatible with the Puneet Resins decision and set aside the impugned orders, allowing the appeals by the importers.

In conclusion, the judgment clarified the calculation of landed value under Customs Notifications and the treatment of Customs duties, affirming that exemptions should be considered when determining the final value. The decision aligned with the principle that only duties paid should be factored into the landed value, ensuring fairness in duty assessments on imported goods.