9911796707
TMI Blog2007 (6) TMI 48X X X X Extracts X X X X X X X X Extracts X X X X ..... 97, they had filed 28 Bills of Entry in respect of certain consignments of petroleum products received at Cochin port by daughter vessels as transshipments from major ports, whereat the mother vessels were anchored. The Customs authorities noticed that the freight incurred on the daughter vessels had not been included in the assessable value and consequently there was a short-payment of duty to the extent of Rs. 1,36,78,064/-. The company paid an amount of Rs. 98,79,024/- on a notional basis during the course of departmental investigations. In a subsequent show- cause notice issued by the department, they were directed to pay the balance amount of duty and were also sought to be penalized under Section 114A of the Customs Act. The noticee c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s connection, ld. Counsel .refers to the Board's Circular No. 4/2006, dated 12-1-2006, wherein the question of includibility of 'daughter vessel freight' in the assessable value of petroleum products imported by oil companies was examined and it was clarified as under "4. The above issue was discussed in the Chief Commissioners Conference held on 1st October, 2005 at Mumbai. The conference agreed that the recommendations of the Shri R.K. Chakraborti Committee should be accepted and that pending cases of assessments should be finalized as per the two alternative methods of computation of cost of transportation for daughter/time chartered vessel. The first option which is based on the World Scale rates duly adjusted on the basis of AFRA rat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ULATION OF DAUGHTER VESSEL FREIGHT FOR DETERMINING THE CUSTOMS DUTY PAYMENT DURING THE PERIOD 1994-97" has been produced by Counsel and we have examined the same. It is, further, pointed out by ld. counsel that the SCN itself was premature for want of finalization of provisional assessments and that there was no warrant for any corrigendum to such a notice and, that too, when the process of adjudication of the original notice was underway. We have heard ld. SDR also, who points out that there is no finding in the impugned order regarding the nature of the assessments, whether provisional or final. 3. On a perusal of the impugned order, however, we find that the plea of the assessee that the assessments were provisional was not accepted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Customs Act was clear enough to enable the assessee to correctly determine the freight to be included in the assessable value of the subject goods. Ld. Counsel has countered this submission by pointing out that the includibility of 'daughter vessel freight' in the assessable value of the goods was not free from doubt even in the departmental circles as evidenced by the Board's Circular. We have found a point in this submission of counsel inasmuch as the Board's decision was taken after deliberations in a conference of Chief Commissioners of Customs. In the circumstances, it cannot be said that the legal position was clear enough to the assessee so as to compel them to include 'daughter vessel freight' in the assessable value of the g ..... X X X X Extracts X X X X X X X X Extracts X X X X
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