1983 (4) TMI 170 - AT - Central Excise

Summary

Issues:
1. Conversion of freight amount from foreign currency to Indian rupees for customs duty calculation.
2. Inclusion of landing charges in the assessable value under Section 14 of the Customs Act, 1962.

Analysis:
1. The first issue revolves around the conversion of the freight amount from foreign currency to Indian rupees for customs duty calculation. The appellant argued that since the freight was paid in Indian rupees, the Customs authorities had no justification to convert the freight amount from US dollars to Indian rupees, resulting in a higher duty payment due to the exchange rate difference. However, the respondent contended that as per Section 15(3)(a) of the Customs Act, the value for customs duty calculation is based on the rate of exchange on the date of bill presentation, regardless of the currency in which the payment was made. The tribunal upheld the respondent's argument, emphasizing that special agreements between the Government of India and international financial institutions do not override statutory provisions. The tribunal dismissed the appeal on this ground.

2. The second issue concerns the inclusion of landing charges in the assessable value. The appellant raised concerns about the legality of adding landing charges, arguing against their inclusion. The respondent countered these arguments, stating that the legality and propriety of landing charges were previously discussed in another appeal by the same appellants. The tribunal referred to its previous decision on a related matter and rejected the appellant's claim regarding the addition of landing charges. Consequently, the tribunal dismissed the appeal on this ground as well.

In conclusion, the tribunal carefully considered the submissions from both parties but found no merit in the appeal. The tribunal upheld the Customs Act's provisions regarding the computation of assessable value, emphasizing the statutory requirements for currency conversion and the inclusion of charges. As a result, the tribunal dismissed the appeal in its entirety, ruling against the appellant on both grounds.