2000 (12) TMI 169 - AT - Customs

Summary

Issues:
Appeals challenging duties and penalties imposed on importers for including demurrage charges, bank charges, and ocean loss in the assessable value of goods.

Analysis:
1. Demurrage Charges:
The appellants contested the inclusion of demurrage charges in the assessable value of goods. They argued that the charges are extraordinary expenditures and should not be considered part of the selling price. The Larger Bench's decision in Indian Oil Corpn. Ltd. v. CC, Calcutta supported this argument, concluding that demurrage charges are not to be added to the assessable value. The Tribunal agreed with this view, ruling in favor of the appellants on demurrage charges.

2. Bank Charges:
Regarding bank charges, the appellants contended that these charges are for services provided by the bank and should not be considered part of the goods' price. They referenced Circular F. No. 467/21/89-Cus-IV, which also supported their argument. The Tribunal concurred with this position, holding that bank charges are not includible in the assessable value.

3. Ocean Loss:
The appellants claimed deductions for ocean loss, which could occur due to spillage or evaporation. However, they acknowledged that payments were made for the entire quantity, including the loss. The Tribunal referred to CCE v. Surya Roshni Ltd., where it was established that transit losses compensated by the buyer cannot be deducted from the assessable value. Consequently, the Tribunal rejected the appellants' claim for deductions on ocean losses.

4. Limitation Issue:
The appellants argued that the demands were time-barred, citing the Revenue's awareness of certain invoicing practices. The Commissioner deemed the assessments provisional, which the appellants disputed, claiming the assessments were final. The Tribunal remanded the matter to the original adjudicating authority to determine the limitation issue afresh, specifically concerning demands related to ocean losses. The appeals were allowed on demurrage and bank charges but rejected on ocean losses, pending a fresh limitation assessment.

In conclusion, the Tribunal ruled in favor of the appellants on demurrage and bank charges, rejecting their claim for deductions on ocean losses. The matter was remanded for a fresh assessment on the limitation issue related to ocean losses, emphasizing that the time bar would apply only to those specific demands.