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TMI Blog2024 (3) TMI 934X X X X Extracts X X X X X X X X Extracts X X X X ..... roper Custom duty. Now in addition to that, adjudicating authority is adding 20% as cost of transportation, handling charges of 1.125% and 1% of assessable value for confirming demand of Rs. 30,31,174/- - The inclusion of freight and insurance in the assessable value in commercial parlance, is designated as CIF in transactions. The vessel, ever coursing the seas and oceans, does not take on additional insurance merely for the purposes of movement to a destination for registration and the cost of self-propulsion does not add to the value of the vessel. Moreover as per the estimated voyage cost produced by the appellant, they have added cost of Rs. 1,70,595/- towards cost of voyage and other expenses for the fuel from Colombo to Mangalore Port and paid customs duty. Consequently, the enhancement of assessable value beyond the value assessed by Chartered Engineer fails on every count. Adding the cost of Bunkers, based on the balance quantity of Bunkers at Mangalore port - HELD THAT:- The issue is squarely covered by the judgment of the Hon ble Supreme court in the matter Mangalore Refinery Petrochemicals Ltd. Vs. CC, Mangalore, [ 2015 (9) TMI 245 - SUPREME COURT] where it is held that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clared in the B/E is the transaction value and cannot be rejected since it is based on the purchase invoice dated 09.05.2011 and supported with Chartered Engineer s certificate on 09.05.2011. Regarding additional cost of transportation, the appellant produced chart indicating voyage cost from Colombo to Mangalore and as per the said chart, total freight cost is Rs. 4,51,798/- only. Thus, assessing the cost of transportation @ 20% is unjustifiable. Regarding the loading of value on the balance bunkers, it is submitted that they have declared the same separately on arrival of the ship at the old Mangalore port under B/E No. 5 dated 13.05.2011 and paid an amount of Rs. 23,91,857/- towards Customs duty. 3. Adjudicating authority considered the issue in detail and rejected the transaction value and redetermined the value of the ship as Rs. 27 crore, ordered cost of transportation @ 20% of the FOB value and re-determined the value of Rs. 33,06,48,750/-. In addition to that, an amount of Rs. 1,58,68,211/- was added towards the freight, insurance and handling charges. Accordingly confirmed demand of Rs. 30,31,174/- with interest of Rs. 4,08,391/- on vessel. Regarding bunkers which was not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch cost of adding 20% towards transportation charges not applicable for import of a vessel arriving under its own steam. To support the same, Learned Counsel draw our attention to the decision of the Tribunal in the matter of Sachin Kshirsagar Vs. Commissioner of Customs, 2023 (383) E.L.T. 190 (Tri.-Mumbai) which was upheld by Hon ble Supreme Court in 2023 (383) E.L.T. 144 (S.C.). Learned Counsel further submits that transaction value can be rejected only when sufficient evidence available on record and in the absence of any evidence, there is no justification for loading the value. Regarding inclusion of handling charges. Learned Counsel submits that it is justified only when such charges are not known or are not ascertainable to support the above. Learned Counsel relied on the judgement of the Hon ble Supreme Court in the matter of Wipro Ltd. Vs. Assistant Collector, 2015 (319) E.L.T. 177 (S.C.). 5. Regarding demand of Customs duty against bunkers declared in the Bill of Entry No. 05 dated 13.05.2011, Learned Counsel submits that the at the time of import itself appellant had filed Bill of Entry No. 5/13.05.2011 for the bunkers on board including HSD, FO and Lube Oil and made pay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rned. To support the same, Learned Counsel relied on the judgement of Hon ble Supreme Court in the matter of SRF Ltd. vs. Commissioner of Customs, 2015 (318) E.L.T. 607 (S.C.) and affirmed in 2016 (340) E.L.T. A202 (S.C.) wherein it was held that where no credit has been availed, the exemption from CVD cannot be denied to assessee while re-opened the issue of valuation. Learned Counsel also draw our attention to the decision of the Tribunal in the matter of Kalyani Lemmez Limited Vs. CCE, 2002 (150) E.L.T. 755 (Tri.-Mumbai) where it is held that when the department has reopened the assessment and demanded differential duty for whatever reasons, it is open to the assesse to contest the demand for the higher differential duty with an argument that the rate of duty originally applied was wrong and that the assesse could not be prevented from making a move to contest the Department s claim even if they have not contested the same initially. To support the same Learned counsel relied upon the judgement of the Hon ble Supreme Court in the matter of Belapur Sugar Allied Indus Ltd. Vs. CCE, 1999 (108) E.L.T. 9 (S.C.). Learned counsel also relied the decision of the Hon ble Tribunal in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to clear on payment of proper Custom duty. Now in addition to that, adjudicating authority is adding 20% as cost of transportation, handling charges of 1.125% and 1% of assessable value for confirming demand of Rs. 30,31,174/-. Considering the Judgment of Hon ble Supreme Court in the matter of Wipro Ltd Sachin Kshirsagar and finding in the matter of Sachin Kshirsagar (Supra) The inclusion of freight and insurance in the assessable value in commercial parlance, is designated as CIF in transactions. The vessel, ever coursing the seas and oceans, does not take on additional insurance merely for the purposes of movement to a destination for registration and the cost of self-propulsion does not add to the value of the vessel. Moreover as per the estimated voyage cost produced by the appellant, they have added cost of Rs. 1,70,595/- towards cost of voyage and other expenses for the fuel from Colombo to Mangalore Port and paid customs duty. Consequently, the enhancement of assessable value beyond the value assessed by Chartered Engineer fails on every count. 12. Regarding adding the cost of Bunkers, based on the balance quantity of Bunkers at Mangalore port, Bill of Entry was filed and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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