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TMI Blog2017 (1) TMI 525X X X X Extracts X X X X X X X X Extracts X X X X ..... ared value in Bill of Entry and tax invoice value is includible in the assessable value? - Held that: - the tax invoice raised by the High Sea seller to the High Sea buyer clearly disclosed that value charged is over and above the CIF Value + 2%, therefore method of valuation i.e. CIF Value + 2% will not be applicable in the present case. As regard the LC charges, we are of the view that since LC charges are borne during the course of import as L.C. is opened pre import of the goods, all the expenses which are borne pre-clearance of the imported goods shall be includible in the assessable value. As regard the administrative charges, which appellant claimed that it is on account of various services such as assistance in erection and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods and selling them on High Sea Sale basis. The goods so purchased on High Sea Sale were being cleared from the Customs by declaring the transaction value as CIF value + 2% rather than declaring actual High Sea Sale contract price, which was more than declared CIF value + 2%. Based on the information, investigation was started in the matter of imports of goods wherein M/s. Jharsanya Logistics Pvt Ltd is High Sea Seller. However, the investigation was limited for the purpose of valuation and consequences thereof like demand of levy of duty, confiscation of goods and penalty. During the investigation, it was noticed that M/s. Jharsanya Logistics Pvt Ltd were importing Extec brand mining machine from M/s. Extec Crushing and Screening Ltd, U ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, port charges and other clearing charges, considering the same as these charges merit deduction from composite value shown in tax invoice. However L.C. Charges, administrative expenses was held that these expenses do not merit deduction from the composite value. Accordingly, differential duty was arrived at and the same was confirmed in the Order-in-Original. Being aggrieved by the Order-in-Original, the appellant filed appeal before the Commissioner(Appeals). The Ld. Commissioner(Appeals) concurred with the findings of the Original authority inasmuch as re-determination of the value. However Ld. Commissioner (Appeals) set aside the redemption fine but other confirmations of the original authority was maintained. Being aggrieved by the im ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erection, installation and other services. On the query from the bench regarding the details of the administrative charges, he could not produce the same before this bench and the same was also not provided to the lower authorities. In support of his submission he placed reliance in case of Commissioner of Customs(Port), Kolkata Vs. J. K. Corporation ltd[2007(208) ELT 485(SC)]. He further submits that entire duty demand is time bar as there is no suppression of facts, collusion and willful misstatement on the part of the appellants for the reason that the assessing officer has assessed the Bill of Entry by taking into consideration of the factual aspect of value of the goods, therefore extended period is not invokable. He placed reliance on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that LC charges are related to pre clearance of imported goods as LC is opened before import of the goods. Thereofre being pre import activity LC charges is includible in the value for the purpose of High Sea Sale. As regard the administrative charges appellant could not produce any evidence that for what purpose these administrative charges was collected from the High Sea buyer. As a result the administrative charges is nothing but part and parcel of High Sea Sale commission, therefore same is correctly includible in the assessable value. In support of his submission he placed reliance on the following judgments: (a) Hyderabad Industries Ltd Vs. Union of India[2000(115) ELT 593(S.C.)] (b) Bhansali Engineering Polymers Ltd Vs. C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue charged is over and above the CIF Value + 2%, therefore method of valuation i.e. CIF Value + 2% will not be applicable in the present case. As regard the LC charges, we are of the view that since LC charges are borne during the course of import as L.C. is opened pre import of the goods, all the expenses which are borne pre-clearance of the imported goods shall be includible in the assessable value. As regard the administrative charges, which appellant claimed that it is on account of various services such as assistance in erection and installation of machine, we find that appellant could not produce any evidence in this regard either before the adjudicating authority or before the Commissioner(Appeals) even when the matter was heard by u ..... X X X X Extracts X X X X X X X X Extracts X X X X
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