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TMI Blog2016 (6) TMI 662X X X X Extracts X X X X X X X X Extracts X X X X ..... hnical Member For the Appellant : Ms. Preetha, Adv For the Respondent : Ms Mohammad Yusuf, A. R ORDER Per S. S. Garg The present appeal is directed against the order passed by the Commissioner of Customs confirming the demand in the show-cause notice. 2. Briefly the facts of the present case are that appellants are a Govt of India undertaking engaged in refining and marketing of petroleum products. The appellants received and stored imported as well as indigenous LPG in bulk and thereafter sent it to various LPG bottling plants in the State of Karnataka, Kerala, Tamilnadu, Andhra Pradesh and Goa for bottling and also for supply of LPG through retail dealers. The appellants import LPG and also enter into an agreement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... New Mangalore Port beyond the agreed period is called as demurrage charges and this payment made, has no nexus to the transaction value agreed and operated upon on a CIF basis between the parties. 2.1.1. In this factual background, the appellant was issued a show-cause notice dated 13.03.2007 proposing to redetermine the assessable value of the imported LPG by including the demurrage charges of ₹ 1,66,58,227/- paid to the supplier on account of detention of the vessel beyond the lay time into the assessable value of the imported LPG by invoking the provisions of Rule 9(2)(a) of the Customs Valuation Rules 1988 and to include the differential canalising charges into the assessable value by invoking the provisions of Rule 9 (1)(a)(1) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er bench in para 14 has observed as under: 14. It is our considered view the decision of the Apex Court in the case of Ispat Industries Ltd. and the decision of the Hon ble High Court of Kolkata in the case of Hindustan Lever Ltd. are squarely applicable on the issue which has been referred to Larger Bench. We find that the decision of the Tribunal in the case of Shine Petroleum Pvt. Ltd. and MGM International Exports Ltd. have correctly considered the issue and in view of that, we hold that for the period from 2-3-2001 to 26-9-2006, the ship demurrage charges cannot be included for the discharge of customs duty on the imported goods even if the assessments are made provisionally. He also cited a decision of the larger Bench of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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