2012 (6) TMI 201 - AT - Customs

Bagging charges - inclusion in assessable value of the goods imported - Revenue contended that in case of goods imported in bulk, lying in the Customs area are bagged in the Customs area before clearance, the duty has to be discharged on the bagging charges - Held that - Tribunal held in favor of assessee in case of earlier AY by holding that taxable event is reached at the time when the goods reach the customs barriers and when the bill of entry for home consumption is filed. The charges incurred by the respondents for bagging fertilizers could not be included in the assessable value as the goods have already landed into the Indian territory, and action of bagging is post-importation activity. Hence the same is followed in present appeal - Decided in favor of assessee.

Summary

Issues: Adjournment request by the Assessee, Inclusion of bagging charges in the assessable value of goods imported

Adjournment Request by the Assessee:
The appeal was filed by the Revenue against the order in appeal No. 79/2006 dated 11.09.2006. The advocate on record requested an adjournment, but it was declined as the matter had been re-listed as per the direction of the President. The appeal pertained to the year 2006, so the Tribunal decided to take up the appeal for disposal.

Inclusion of Bagging Charges in the Assessable Value of Goods Imported:
The assessing officers had enhanced the value of the Bills of Entry by including bagging charges incurred after the importation of the goods and charged customs duty. The first appellate authority set aside the assessing officer's assessment order for including bagging charges in the value of the goods imported by the assessee, relying on a previous order. The Revenue contended that all expenses till the customs barriers are crossed should be included for valuation, as the taxable event occurs at that point. However, the Tribunal referred to a previous decision where it was held that the taxable event is reached when goods reach the customs barriers and the bill of entry for home consumption is filed. The charges for bagging fertilizers could not be included in the assessable value as they were incurred post-importation. The Tribunal found no merit in the Revenue's submissions and upheld the first appellate authority's order as correct and legal. Consequently, the Revenue's appeal was rejected.

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