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Issues:
- Whether customs duty paid by the appellant could be included for determining valuation for charging octroi under Rule 17(a) of the Maharashtra Municipalities (Octroi) Rules, 1968. Detailed Analysis: Issue 1: Customs Duty Inclusion for Valuation The appellant, a public limited company importing goods liable to octroi, contested the inclusion of customs duty in the valuation of goods for octroi purposes. The Corporation authorities claimed that customs duty should be considered as part of the value of goods under Rule 17(a) of the Maharashtra Municipalities (Octroi) Rules, 1968. The High Court, relying on precedent, held that even though customs duty was not expressly mentioned in the rule, it should be included in determining the value. The appellant argued that since customs duty was not specified in Rule 17, it should not be considered for valuation. The appellant cited cases where provisions in taxing statutes were interpreted in favor of the assessee. However, the Court noted that in a previous case, countervailing duty was considered includible as an incidental charge, and the term 'incidental charges' in the rule was interpreted broadly to encompass various charges and duties, including customs duty. The rule's language indicated that all incidental expenditures should be part of the goods' value, and customs duty was a necessary expense for importing goods, thus justifying its inclusion in valuation. Conclusion: The Court upheld the decision of the High Court, ruling that customs duty paid by the appellant should be included in determining the value of goods for octroi purposes under Rule 17(a). The Court emphasized the broad interpretation of the rule to encompass all incidental charges, including customs duty, as part of the goods' value. Therefore, the appeal was dismissed with no order as to costs.
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