2009 (1) TMI 677 - AT - Customs

Valuation - levy of education cess - valuation - includibility - bagging (packing) charges - Section 14

Summary

Issues:
1. Dispute over levy of education cess and inclusion of bagging charges in assessable value for imported diamonium phosphate.

Analysis:
The judgment revolves around a dispute concerning the imposition of education cess and the treatment of bagging charges in the assessable value of diamonium phosphate imported by the respondents. The Commissioner (Appeals) granted an exemption from education cess, stating that such exemption can be claimed subsequently. Additionally, the Commissioner held that bagging charges should not be included in the assessable value since the goods were imported in bulk and bagging was carried out after unloading in the port area. The Revenue appealed against the exclusion of bagging charges from the assessable value.

The learned D.R. representing the Revenue argued that importation is only deemed complete when the goods cross the customs barrier. Despite the goods being imported in bulk, they were cleared for home consumption in bags after being given out of charge. No representation was made on behalf of the respondents. The Tribunal observed that the Commissioner (Appeals) thoroughly examined the issue. It was undisputed that bagging occurred post-unloading, and the importation process was considered complete upon unloading in the port area. Referring to Section 14, the Tribunal affirmed that importation concludes once the goods are unloaded on land. Considering various judicial precedents and the specific circumstances of importing diamonium phosphate in bulk with bagging post-unloading, the Tribunal found no grounds to support the Revenue's appeal, thereby dismissing it.

In conclusion, the appellate tribunal upheld the Commissioner (Appeals)' decision to exclude bagging charges from the assessable value and dismissed the Revenue's appeal.