2017 (5) TMI 801 - AT - Customs

Valuation of imported goods - includibility - Pull Buck Tug Charges Tug/Launch Charges and Port Tonnage Charges - case of importer is that these charges are not to be included in the assessable value u/r 10(2) (b) of Customs Valuation Rules 2007 when 10% landing charges already included in the assessable value - Held that - the matter is covered by the judgment of Hon ble Supreme Court in the case of Coromandal Fertilzers Ltd Vs Collector of Customs 1999 (12) TMI 59 - SUPREME COURT OF INDIA where it was held that landing charges cover the totality of all that an importer expends to bring imported goods to land - these charges not required to be included in assessable value - appeal dismissed - decided against Revenue.

Summary

Issues:
- Inclusion of Pull Buck Tug Charges, Tug/Launch Charges, and Port Tonnage Charges in the assessable value under Rule 10(2) (b) of Customs Valuation Rules, 2007.

Analysis:
The Revenue, represented by the Commissioner of Customs, Jamnagar, appealed against the order passed by the Commissioner of Customs (Appeals), Jamnagar, regarding the inclusion of Pull Buck Tug Charges, Tug/Launch Charges, and Port Tonnage Charges in the assessable value. The respondent, M/s Reliance Industries Ltd, imported petroleum crude oil, and during the final assessment, original documents related to these charges were not provided. The Assistant Commissioner held that these charges should be included in the assessable value, which was challenged by M/s RIL in an appeal. The Commissioner (Appeals) decided that charges above the landing charges already included in the assessable value cannot be added. The Revenue appealed to the Tribunal.

The Tribunal analyzed the case in light of the judgment of the Hon'ble Supreme Court in Coromandal Fertilzers Ltd Vs Collector of Customs, where it was stated that landing charges cover all expenses incurred by an importer to bring goods to land. The Tribunal also referred to the case of Indian Oil Corporation Ltd Vs CCE, Cochin, which followed the Supreme Court's decision. Based on these precedents, the Tribunal dismissed the appeals filed by the Revenue, upholding the impugned order and ruling that the charges in question should not be included in the assessable value beyond the landing charges already accounted for.

In conclusion, the Tribunal, consisting of Dr. D. M. Misra and Mr. Ashok K. Arya, Members, pronounced the judgment on 12.05.2017, dismissing the appeals filed by the Revenue as lacking merit and sustaining the impugned order. The decision was based on established legal principles regarding the assessment of landing charges and the inclusion of additional charges in the assessable value under the Customs Valuation Rules.