1998 (5) TMI 128 - AT - Customs

Summary

Issues:
1. Whether despatch money should be deducted from the assessable value of imported goods.
2. Validity of the Commissioner's authorization in the appeal.
3. Interpretation of Rule 9(2)(a) of the Customs Valuation Rules, 1988 regarding the cost of transportation of imported goods.

Analysis:
1. The appeal concerned the deduction of despatch money from the assessable value of imported goods. The Commissioner (Appeals) held that despatch money should be deducted as it forms part of the cost of transport, which is included in the value of imported goods. The appellant argued that despatch money, being a part of freight, should be excluded from the assessable value. The Tribunal referred to previous rulings, including one involving demurrage money, to support the deduction of despatch money from the cost of transport. The Tribunal emphasized that if despatch money is a component of freight, it should be eligible for exclusion from the assessable value, as only the actual cost of transport should be added to the value.

2. The appellant raised an objection regarding the authorization of the Commissioner in the appeal process. Citing a previous judgment, the appellant argued that the appeal could be deemed invalid if the grounds of appeal were not properly stated. However, the Tribunal did not find merit in this objection and proceeded with the analysis of the main issue regarding the deduction of despatch money.

3. The interpretation of Rule 9(2)(a) of the Customs Valuation Rules, 1988 was crucial in determining whether despatch money should be deducted from the assessable value. The Tribunal examined the rule, which specifies the inclusion of the cost of transportation of imported goods in the value. By considering previous judgments and the nature of despatch money as a rebate on freight, the Tribunal concluded that the Commissioner had rightly allowed the deduction of despatch money from the assessable value. The Tribunal highlighted that any rebate or bonus related to transportation costs should be considered for deduction to arrive at the correct assessable value of imported goods. Based on these considerations, the Tribunal rejected the appeal, affirming the Commissioner's decision to allow the deduction of despatch money from the assessable value.