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TMI Blog2016 (9) TMI 565X X X X Extracts X X X X X X X X Extracts X X X X ..... justified. Valuation – Held that: - the Commissioner has adopted a very just and fair reasoning with regard to ascertaining the assessable value of imported fuel oil lying in the foreign bunkers for finalisation of the provisional assessment. The adjudicating authority had taken contemporaneous price of identical goods of which the bunkers were supplied to the same class of buyers during material period. This is the correct and proper manner for finalization of the assessment. Appeal dismissed – decided against appellant revenue. - C/332/2006 - Final Order No. A/30603/2016 - Dated:- 15-7-2016 - Ms. Sulekha Beevi, C.S., Member (JudiciaI) and Shri Madhu Mohan Damodhar, Member(Technical) Shri Ajay Kumar, Asst. Commissioner (AR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... informed to the Customs Authorities. The Bill of Entry 2125/13-07-98 was taken up for final assessment and by adopting first-in-first-out principle the actual consumption was arrived at by the Officers as below:- Item Opening Inventory (Foreign Origin) Duty paid Bunkers supplied during coastal voyage Total quantity with this supply Closing inventory quantity Actual consumption as per FIRST-IN-FIRST OUT Principle Fuel Oil 678.22 MT 193.03 MT 871.25 MT 299 MT 572.25 MT Diesel Oil 28.39 MT 137.09 MT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quantity of 193.03 MT of Fuel oil is also to be included in the opening inventory of 678.22 MT of Fuel Oil in order to ascertain the total quantity of Fuel Oil consumed during the Coastal run. He also accepted the respondents' contention that the Adjudicating authority had erred in adopting the FIRST-IN-FIRST-OUT PRINCIPLE for calculating the quantity of Oil allegedly consumed during the coastal voyage of the vessel basing on the Customs Public Notice No.93/97 which was issued by Visakhapatnam Custom House on November 24/25th 1997. In this Public Notice it was nowhere mentioned that FIRST-IN-FIRST-OUT PRINCIPLE or any method of inventory control would be employed for recovering the duty on the ships stores consumed authority held t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate authority is not correct as the opening balance of the Fuel Oil (Foreign Origin) was 678.22 MT and the quantity consumed during the coastal voyage was 572.25 MT i.e. less than the opening balance and still balance quantity was available at the time of reversion to Foreign run. Hence, the closing balance of Fuel Oil 299 MT includes the duty paid cargo of 193.03 MT. If the respondents apply for refund of duty on the duty paid stock available at the time of reversion to Foreign run the same will be dealt with as per provisions of Customs Act, 1962. iii. The method adopted for ascertaining the quantity consumed during the coastal voyage in the case of Fuel Oil cannot applied in the case of Diesel Oil without considering the quantity purc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se Public Notice Nos. 93/97; 129/95; 261/2000. When there is no statutory backing to First-in First-out (FIFO) principle, reliance upon circular cannot create tax liability or any legal liability for that matter. This is evident from the judgement of the Honourable Supreme Court in JhunJhunuwala Vs. State of U.P., [2006 (7) Supreme 379]. iv. Besides, 2000 circular cannot be anticipated in 1997 Circular which is earlier in date. v. 1995 Circular and 2000 Circular are given in a different context under the Central Excise for the storage of duty paid Mineral Oils, along with non duty paid Mineral Oil products in the Bonded Storage Tanks. The facts of this case are entirely different from the above two circulars and are therefore square ..... X X X X Extracts X X X X X X X X Extracts X X X X
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