9911796707
TMI Blog1998 (5) TMI 128X X X X Extracts X X X X X X X X Extracts X X X X ..... goods to the place of importation has to be included in the value. He observed that the term cost means `to involve an expenditure of . When despatch money is earned and when that is deducted from the freight, the resultant amount paid as freight to the cost of transport. In this regard he has also drawn support from Tribunal s ruling rendered in the case of Collector of Customs, Madras v. Coromandal Fertilizers Ltd. - 1998 (33) E.L.T. 451 (Tribunal) wherein it has been held that despatch money should be deducted from the cost of transport. The order of the Tribunal also states that demurrage money should be added to the cost of transport. Whether it is in the nature of penalty or otherwise, it is an element which goes into the value of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... give grounds of appeal in that direction and further pointed out that the appeal will be invalid if an appeal memorandum does not contain verification as prescribed. On imports he submits that the despatch money is a part of freight and they are entitled to have deducted from the assessable value and the Commissioner has rightly given such conclusion. He also refers to the Rule 9(2)(a) of the Customs Valuation (Determination of Price of Imported Goods) Rules, 1988 wherein it has been clearly laid down that the cost of transportation of imported goods to the place of importation ; he gave an example that where a ship leaves the port in time after despatching the cargo, the charterer is given a rebate of freight and that is known as `despat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arrive at assessable value. The fact that the rebate in question is granted subsequently cannot be a ground for disallowing the rebate for the purpose of calculation of assessable value because even at the time of picking of the cargo it is known that this rebate would be forthcoming to the customer in due course . The Tribunal has, likewise, taken the same view in C.C.E., v. Coromandal Fertilizerss Ltd. wherein it has been held that assessable value has to include unloading charges also, not merely on port charges but has also held that no bonus earned for quick unloading should be deducted under Section 14 of the Act. Respectfully following these two ratios, we hold that the Commissioner has rightly allowed the appellant s claim. We do n ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
