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Issues: Inclusion of bagging charges of imported fertilizers in the assessable value.
Summary: The appeal was filed by the Revenue against the order-in-appeal dated 31-7-03 regarding the inclusion of bagging charges of fertilizers imported by the respondent. The Revenue contended that bagging charges should be included in the assessable value of the imported goods as the fertilizers are finally sold to the consumer after bagging. However, the learned Advocate for the respondent argued that the issue is covered by the decision of the Hon'ble Supreme Court in the case of Garden Silk Mills v. Union of India. The Commissioner (Appeals) relied on this judgment and allowed the appeal of the respondent. Upon considering the submissions and perusing the record, the Tribunal found that the judgment of the Hon'ble Supreme Court in the case of Garden Silk Mills squarely covers the issue. The Tribunal referred to a portion of the Supreme Court's decision which highlighted that the taxable event is reached when the goods reach the customs barriers and the bill of entry for home consumption is filed. Since the bagging of fertilizers is a post-importation activity and the goods have already landed in Indian territory, the charges for bagging could not be included in the assessable value. Therefore, the appeal filed by the Revenue was dismissed for lacking merit.
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