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TMI Blog2023 (10) TMI 963X X X X Extracts X X X X X X X X Extracts X X X X ..... of Tata Steel Limited [ 2019 (10) TMI 226 - ORISSA HIGH COURT] wherein the Hon ble Court has held that the contentions raised by the petitioner that the relevant provisions in the Principal Act is silent about the demurrage ; thus, it was beyond the legislative power to include it in the Rules is accepted and thus the explanation to sub-rule-(2) of Rule 10 of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 is held to be bad and hence declared ultra vires the Constitution/provision of Section 14 of the Customs Act, 1962, and hence the same is struck down. From the above order, it is settled that the demurrage charges cannot be included in the transaction value of imported goods. The entire case of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evenue appellant submits that the learned Commissioner (Appeals) has set aside the order in original and allowed the appeal of the respondent relying upon the Orissa High Court judgment in the case of Tata Steel Limited. He submits that the said decision has been appealed against by filing SLP before the Hon ble Supreme Court by the Revenue. He further submits that the issue is otherwise covered in favour of the Revenue in case of Grasim Industries Limited case by Larger Bench which is reported at 2013 (296) ELT 39 (Tri. L.B.). He further submits that since the issue involved was custom valuation of the goods, the Hon ble Orissa High Court had no jurisdiction to entertain the appeal of the assessee. In this regard, he placed reliance on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Under the principal Act, while amending it on 10th October, 2007, proviso has included the costs and services, including commissions and brokerage, engineering, design work, royalties and license fees, costs of transportation to the place of importation, insurance, loading, unloading and handling charges to the extent and in the manner specified in the Rules. The demurrage has not been included as a part of cost envisaged by the legislation. Further, it is a kind of penalty. Therefore, it could not have been envisaged by the legislation to be included in the definition of Section 14 of the Act. However, in view of the clarifications by way of judgments of the Hon ble Supreme Court, more particularly in the cases of Wipro Ltd. (supra), Essar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eld ultra virus, the entire basis of the Revenue case falls. We, further, find that this very Tribunal subsequent to passing of the Orissa High Court judgment, in the case of Jubilant Life Science Limited, followed the Orissa High Court judgment, therefore, applying the principles of judicial discipline, we do not have any option except to follow the Hon ble Orissa High Court judgment in the case of Tata Steel Limited as also this Tribunal s decision in the case of Jubilant Life Science Limited. Accordingly, the impugned order passed by the learned Commissioner is just and proper and the same does not suffer from any infirmity. Accordingly, the same is upheld and Revenue s appeal is dismissed. ( Pronounced in the open court on 20. 10. 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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