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TMI Blog2023 (10) TMI 756X X X X Extracts X X X X X X X X Extracts X X X X ..... STICS LTD. VERSUS CCEX, CUS. S. TAX, BBSR I [ 2019 (2) TMI 777 - CESTAT KOLKATA ]. The method of valuation of the Revenue is not proper. The elements of freight and insurance and Landing charges need not be added again as the same have already been included in the selling price of IOCL. Accordingly, the assessable value is to be re-determined based on the selling price of IOCL, without including freight, insurance and landing charges. Excess payment of customs duty, if any, needs to be refunded to the Appellant along with interest. Appeal allowed. - HON BLE MR. R. MURALIDHAR MEMBER ( JUDICIAL ) And HON BLE MR. K. ANPAZHAKAN MEMBER ( TECHNICAL ) Shri Aditya Dutta , Advocate for the Appellant Shri S. Debnath , Authorized Representative for the Respondent ORDER PER K. ANPAZHAKAN : The Appellant, M/s. Seatrans Ship management Services Pvt. Ltd. acted as agent for M/s. SPUR Shipping Pte. Ltd., who has chartered a vessel MV ZHENGKAI arrived at Paradip port for discharge of import cargo and on completion of discharge, the vessel was converted from foreign run to coastal run for carriage of coastal cargo viz. Thermal Coal from Paradip port ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng alternative is valuation of impugned fuel oil (FO) and diesel oil (DO) by the Residual Method under Rule 9(1) ibid, which provides for determination of value using reasonable means consistent with the principles and general provisions of these Rules and on the basis of data available in India. Thus, contemporaneous import value which may be available in NIDB is the appropriate basis for valuation of the impugned goods in the present case. However, they have paid customs duty under protest on the value as assessed by Customs Department. 3. The Appellant further submits that the Commissioner (Appeals), Bhubaneshwar has held the same principle while deciding the following appeals before him on the same issue. (i) O/A No. 16-29/CUS/CCP/202 dated 23.02.2022 (ii) O/A No. 160-172/CUS/CCP/202 dated 17.12.2021 (iii) O/A No. 112/159/CUS/CCP/2021 dated 16.12.2021 4. None of these appeals has been reviewed and thus they have attained finality and a different stand cannot be taken as held by the Hon ble Supreme Court in the case of ITC Ltd. CCE [2019-TIOL-418- SC-CUS-LB]. In view of the decision taken by the Commissioner (Appeals) by adopting the above method, a di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e department has adopted the price at which such goods are sold to ships by Indian Oil Corp. Ltd. (IOCL, for short) at Indian Ports to the vessels in India plus 20% of FOB as freight plus @1.125% as Insurance and @1% as Landing Charge. The Appellant's contention is that IOCL has already included the freight and insurance charges and hence to arrive at the value under the 'Residual Method' the freight and insurance need not be added again. We agree with the submission of the Appellant. When IOCL sells the goods the elements of freight and insurance are already added. Hence, these elements need not be added again to arrive the assessable value for the purpose of charging duty on the Fuel Oil and Diesel Oil used by the vessel during its coastal run. We observe that this method of valuation is supported by the decision of the Tribunal in the case of SICAL Logistics Ltd. Vs Commr. of CCE, Bhubaneswar-I, reported in 2019 (369) ELT 1104 (Tri- Kolkata),.The relevant para of the decision is reproduced below: 8. The dispute on valuation has arisen in respect of value to be adopted for the purposes of payment of Customs duty on the bunker, which remains in the vessels at the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ales in India of imported goods of the same class or kind. (ii) The usual costs of transport and insurance and associated costs incurred within India. (iii) The customs duties and other taxes payable in India by reason of importation or sale of the goods. (2) If neither the imported goods nor identical nor similar imported goods are sold at or about the same time of importation of the goods being valued, the value of imported goods shall, subject otherwise to the provisions of sub-rule (1) of this rule, be based on the unit price at which the imported goods or identical or similar imported goods are sold in India, at the earliest date after importation but before the expiry of ninety days after such importation. (3) (a) If neither the imported goods nor identical nor similar imported goods are sold in India in the condition as imported, then, the value shall be based on the unit price at which the imported goods, after further processing, are sold in the greatest aggregate quantity to persons who are not related to the seller in India. (b) In such determination, due allowance shall be made for the value added by processing and the deductions provided f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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