Demurrage charges in customs valuation referred to Larger Bench after conflicting views on circular-based includibility.

Demurrage charges were treated as potentially includible in the assessable value of imported goods after Circular No. 14/2001-Cus. dated 02.03.2001, which superseded the 1991 circular and stated that such charges formed part of transportation cost. The members noted a later circular dated 12.12.2006, but differed on the effect of the 2001 circular and on whether earlier Tribunal rulings excluding demurrage for the relevant period remained correct. Because authoritative reconsideration was required, the matter was directed for placement before the President to constitute a Larger Bench. No final merits determination on includibility was made.

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Issues: Whether demurrage charges are includible in the assessable value for imports subsequent to 02.03.2001 when the Board's circular of 02.03.2001 stated that such charges were includible, and whether the earlier Tribunal decisions excluding them required reconsideration.

Analysis: The Tribunal noted that the Board had issued Circular No. 14/2001-Cus. dated 02.03.2001, which superseded the earlier 1991 circular and stated that demurrage charges were to be added to the cost of transportation. It also noted the later circular dated 12.12.2006, but the members differed on the effect of the 02.03.2001 circular and on whether the earlier Tribunal decisions correctly held that demurrage could not be included for the relevant period. In view of the disagreement with the earlier views and the need for authoritative reconsideration, the matter was directed to be placed before the President for constitution of a Larger Bench.

Conclusion: No final determination was made on the includibility of demurrage charges on merits; the question was referred for decision by a Larger Bench.

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