9911796707
TMI BlogDetermination of value under Section 14 of the Customs Act, 1962 in respect of sale of warehoused goods - clarification regardingX X X X Extracts X X X X X X X X Extracts X X X X ..... r Section 14 of the Customs Act, 1962 in respect of sale of warehoused goods - clarification regarding. The prevalence of divergent practices in field formations with respect to the determination of assessable value of imported goods that are warehoused under Section 58 / 59 of the Customs Act, 1962 and sold before being cleared for home consumption has been brought to the notice of the Board. While one view is that the sale of imported goods after warehousing does not affect the valuation of imported goods, the other view is that the price at which the original importer has sold the goods, before a Bill of Entry for home consumption is filed, should be taken as the assessable value of the imported goods under Section 14 of the Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tually paid or payable for the goods when sold for export to India for delivery at the time and place of importation and, hence, the value at which such transaction takes place will not qualify as the transaction value, as per Section 14 . 3. For the period prior to October 2007, Section 14 read as: "For the purposes of the Customs Tariff Act, 1975 (51 of 1975) , or any other law for the time being in force, where-under a duty of customs is chargeable on any goods by reference to their value, the value of such goods shall be deemed to be the price at which such or like goods are ordinarily sold, or offered for sale, for delivery at the time and place of importation or exportation, or as the case may be, in the course of internationa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consumption is filed and it is the value at that point of time which would be relevant --". However, in the case of Garden Silk Mills, the Court was considering the issue of includibility of landing charges in the assessable value of imported goods. The goods in that case were cleared for home consumption after import and no warehousing or sale was involved before clearance of the imported goods. The issue of whether sale of imported goods after warehousing would constitute a sale in the course of international trade was not an issue before the Hon'ble Court. Thus, the main issue involved as well as the facts and circumstances of the present case are not identical to those of Garden Silk Mills case. Hence, the rationale of the said case ca ..... X X X X Extracts X X X X X X X X Extracts X X X X
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