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TMI Blog2023 (12) TMI 446X X X X Extracts X X X X X X X X Extracts X X X X ..... issue which is to be decided by us is whether the transportation charges in terms of Rule 10 (b) of the Valuation Rules, 2007, are to be includable in the assessable value or not. The said issue has been examined by the Larger Bench of this Tribunal in the assessee s own case M/S JET AIRWAYS (INDIA) LIMITED VERSUS COMMISSIONER OF CUSTOMS (I) (AIRPORT) , MUMBAI [ 2021 (5) TMI 908 - CESTAT MUMBAI (LB)] , wherein this Tribunal has held ATF which is filled in the fuel tank of the aircraft is actually required to fly the aircraft and is a consumable for the airlines. It cannot, in such circumstances, be urged that ATF is being transported through the aircraft. A different situation would, however, arise if an oil company specifically imports AT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urn journey to Kolkata. The quantity of such ATF, on arrival at Kolkata Airport and before diverting such aircrafts into domestic sector for the period December, 2007 to December, 2011, was found to be 13907.68 KL . 2.1 The ATF is classifiable under CTH 27101920 and attract BCD @ 0%, CVD @ 8%, Education Cess + Secondary Higher Secondary Cess on CVD @ 2% + 1% and Education Cess + Secondary Higher Secondary Cess on Total duty @ 2% + 1%. The Basic Customs on ATF has been made Nil vide amendment Notification No.119/2008-Cus dated 31.10.2008 by inserting a new Sl.No.77C into the Notification No.21/2002-Cus dated 01.03.2002 and CVD @ 8% in terms of Sl.No.22 of Notification No.06/2006-CE dated 01.03.2006 as amended. 2.2 The excess fuel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 125% as insurance charges on ATF. 2.7 The matter was adjudicated. The demand on account of short payment of duty by not including 20% of the value for transportation charges and 1.125% of the value on account of insurance charges in the assessable value was confirmed. 2.8 Therefore, the demand was confirmed along with interest and penalty of Rs.2.00 Crores was also imposed. 2.9 The adjudicating authority did not confiscate the imported goods, consequently, did not impose any redemption fine. 2.10 Against the said order, both sides are in appeals. The assessee is in appeal challenging the demand of duty along with interest and imposing penalty and Revenue is in appeal for not holding ATF is liable for confiscation and not imposin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ule 10 (b) of the Valuation Rules, 2007, are to be includable in the assessable value or not. The said issue has been examined by the Larger Bench of this Tribunal in the assessee s own case (supra), wherein this Tribunal has held as under : 48. It is not in dispute that the appellant has discharged the duty liability on the price of remnant ATF for more than a decade treating it to be imported goods taking into consideration the prevalent IOCL price. The question that arises for consideration in this appeal is whether the ATF which is filled in the fuel tank of an aircraft is actually being transported through an aircraft. The answer clearly is that the airlines are not transporting ATF for delivery to India. ATF which is filled in th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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