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Issues:
Includibility of demurrage charges, actual wharfage charges, and payments made towards stock loss in the assessable value under Section 14 of the Customs Act, 1962. Analysis: The lower appellate authority had previously held that demurrage charges, wharfage charges, and stock loss should not be included in the assessable value under Section 14 of the Customs Act, 1962. The authority reasoned that these charges were not relevant to the time of delivery of the goods at the place of importation, as they were incurred after landing and delivery of the goods. The only charges deemed includible were ocean loss and bank charges, excluding demurrage, wharfage, and stock loss. The Department argued that charges such as demurrage, wharfage, and stock loss collected from the high seas buyer by the high seas seller should form part of the high seas sale price. They referred to a conference decision and departmental instructions supporting this view. The Department contended that since the sale took place on the high seas, charges incurred up to the point of goods clearance should be included in the assessable value. The Tribunal noted that the original transactions between the high sea seller and the foreign supplier had the attributes of a transaction during the course of international trade. However, the contract for the high seas sale was not provided for examination. The Tribunal emphasized that additions to the value of purchased goods should be considered under the Customs Act provisions. Rule 9(2) of the Valuation Rules allows only specific charges to be added, such as transport costs, loading charges, and insurance. Rule 9(4) prohibits additions to the price paid unless specified in the rule. The Tribunal concluded that a detailed examination of the issue was necessary, considering the contracts between the respondents and the high sea seller. The lower authority's order lacked discussion on the relevant rules and refrains. Therefore, the Tribunal remanded the appeals for a fresh examination, affording the respondents an opportunity to present evidence and contracts for a comprehensive assessment of the includibility of charges in the assessable value.
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