2017 (7) TMI 471 - AT - Customs

Valuation - freight - includibility - sale of goods on principal to principal basis - Held that - Revenue has presented four grounds in the said grounds of appeal and we find that the main ground of appeal was at Serial No. (iv). We find that it was already adjudicated upon by ld. Commissioner (Appeals) through impugned Order-in-Appeal dated 13.05.2013 and Revenue has not brought forward any ground to contest the finding by ld. Commissioner (Appeals) - there are no grounds to interfere with the value of export goods declared by the respondent while filing the said 31 Shipping Bills - appeal dismissed - decided against Revenue.

Summary

Issues:
1. Valuation of export goods including freight charges.
2. Contestation of freight charges inclusion in assessable value.
3. Appeal against Order-in-Appeal No.01/Cus/Alld./2013.
4. Adjudication of grounds of appeal by the Commissioner (Appeals).
5. Dismissal of Revenue's appeal.

Valuation of Export Goods Including Freight Charges:
The case involved a dispute regarding the valuation of export goods, specifically Iron Ore Fines, and whether the freight charges incurred by the supplier should be included in the assessable value. The Assistant Commissioner contended that the freight charges should be added to the assessable value, while the respondent argued that the transportation cost was already included in the price charged by the supplier. The Commissioner (Appeals) analyzed the financial transactions and determined that the freight charges should not form part of the transaction value of the export goods.

Contestation of Freight Charges Inclusion in Assessable Value:
The respondent, M/s Agarwal Associates, contested the inclusion of freight charges in the assessable value of the export goods. They maintained that the cost of transportation was already factored into the price charged by the supplier, M/s Gallant Ispat Ltd., and that they had included a separate transportation cost in their declaration. The Commissioner (Appeals) upheld the respondent's position, ruling that the freight charges should not be added to the assessable value.

Appeal Against Order-in-Appeal No.01/Cus/Alld./2013:
The Revenue filed an appeal challenging the Order-in-Appeal No.01/Cus/Alld./2013 passed by the Commissioner of Customs, Central Excise & Service Tax (Appeals), Allahabad. The appeal was based on the disagreement over the inclusion of freight charges in the valuation of the export goods.

Adjudication of Grounds of Appeal by the Commissioner (Appeals):
The Commissioner (Appeals) had already adjudicated upon the main ground of appeal raised by the Revenue in the impugned Order-in-Appeal. The Tribunal found that the Revenue did not present any new grounds to contest the Commissioner's findings. Consequently, the Tribunal concluded that there was no merit in the Revenue's appeal and upheld the Commissioner's decision.

Dismissal of Revenue's Appeal:
After considering the rival contentions and the facts on record, the Tribunal dismissed the appeal filed by the Revenue. The Tribunal found no grounds to interfere with the declared value of the export goods by the respondent and upheld the decision of the Commissioner (Appeals). The respondent was granted consequential relief as per law.