Assessable value for imports excluded demurrage and despatch money for pre-2001 transactions under the binding circular then in force.

For imports made before 2.3.2001, demurrage charges and despatch money were not includible in the assessable value because the binding Board circular then in force, dated 14.8.1991, stated that such charges did not form part of valuation. Circular No. 14/2001-Cus dated 2.3.2001 could not be applied retrospectively to alter the position for the earlier period, and the Revenue could not take a stand contrary to the operative circular governing the relevant transactions. The resulting position was that these charges remained excluded from assessable value for imports made before the later circular.

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Issues: Whether demurrage charges and despatch money were liable to be included in the assessable value for imports made prior to 2.3.2001.

Analysis: The relevant transactions pre-dated Circular No. 14/2001-Cus dated 2.3.2001. The prevailing Board circular dated 14.8.1991 stated that demurrage charges and despatch money did not form part of the assessable value. The later circular could not be applied retrospectively to the earlier period, and the Revenue could not advance a stand contrary to the binding circular in force during the relevant time.

Conclusion: Demurrage charges and despatch money were not includible in the assessable value for the period prior to 2.3.2001, and the issue was decided in favour of the assessee.

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