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Issues involved:
The issue involves the inclusion of demurrage charges in the assessable value for the purpose of calculating customs duty. Summary: The case involved M/s. Grasim Industries Ltd., New Delhi importing 18 consignments of coal between 21.6.2001 to 5.2.2002, with bills of entry provisionally assessed. The Tribunal heard the appeal by the department against the order excluding demurrage charges from the assessable value for customs duty calculation. The Revenue argued that demurrage charges should be treated as part of transportation costs. In previous cases, the Tribunal held that demurrage charges were not includable during the relevant period until a final decision was taken by the Board on 26.09.2006. Circulars issued by the Board clarified the treatment of demurrage charges, with a distinction made between demurrage and dispatch monies. The Tribunal emphasized that the circulars indicated that assessments prior to 02.03.2001 should exclude demurrage charges, with instructions for subsequent assessments to be issued later. The Tribunal, in considering the legal position, noted conflicting views on the inclusion of demurrage charges in the assessable value. While the Revenue argued for inclusion based on recent amendments, the Tribunal referenced the Supreme Court's decision affirming the Tribunal's stance on demurrage charges. The Tribunal directed the matter to be placed before a Larger Bench to decide whether demurrage charges can be excluded from the assessable value for imports post-2.3.2001, despite the Board's decision in 2006. In a separate judgment, Judicial Member Archana Wadhwa expressed a difference of opinion with the decision to refer the matter to a Larger Bench, stating doubts about the correctness of the precedent decisions. She did not record a formal difference of opinion but supported the decision for further consideration by a Larger Bench.
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