2008 (7) TMI 712 - AT - Customs

Summary

Issues: Non-allowance of deduction on account of Bottom Sludge and Water (BS&W) and Free Water; inclusion of Additional War Risk Insurance Premium charges relating to vessel; inclusion of Ship Demurrage charges in the assessable value.

In the case before the Appellate Tribunal CESTAT, Bangalore, the appellant filed a Review of Order in relation to Final Order Nos. 1677-1713/2006, raising concerns about certain aspects not being addressed by the Tribunal. The appellant's representative argued that the Tribunal had not considered the non-allowance of deduction on account of BS&W and Free Water, inclusion of Additional War Risk Insurance Premium charges, and Ship Demurrage charges in the assessable value. The appellant sought rectification of this apparent error.

Regarding the deduction on account of BS&W and Free Water, the appellant conceded that since the valuation was based on Transaction Value, the deduction became irrelevant and was not pressed. However, concerning the Ship Demurrage charges, the appellant's counsel referred to a previous decision by the Tribunal and argued that demurrage charges should not be added for the period prior to 26-9-2006. The appellant also contended that War Risk Insurance Premium should not be included.

The Departmental Representative, on the other hand, cited Board's instructions and asserted that Ship Demurrage charges should be added to the assessable value for importations after 2-3-2001. Additionally, the representative argued that War Insurance charge is naturally includible in the assessable value.

After careful consideration, the Tribunal allowed the Review of Order for non-consideration of certain grounds. The Tribunal held that Ship Demurrage charges should not be added for the period prior to 26-9-2006, in line with a previous decision. Regarding BS&W and Free Water, the Tribunal rejected the appellant's contention for deduction based on the valuation of goods imported. As for the War Risk Insurance Premium, the Tribunal noted the lack of authority for deduction and ruled that it should be included in the assessable value. These findings were to be considered in the re-quantification or de novo order by the relevant authority. The Review of Order was allowed accordingly.

*(Pronounced in open Court on 29-7-2008)*