Merchant Overtime Fee not leviable for customs supervision at factory premises during office hours within jurisdiction.

Merchant Overtime Fee was held inapplicable where customs supervision of export loading was carried out by the jurisdictional Central Excise officers at the manufacturer's factory premises, within their territorial jurisdiction and during normal office hours. The fee regime under section 36 of the Customs Act, 1962 and Regulation 3(3)(c) of the Customs (Fees for Rendering Services by Customs Officers) Regulations, 1998 was applied on the basis that overtime fee arises only when services are rendered outside the officer's normal place of work or beyond the customs area. The departmental stand was found inconsistent with the binding instructions relied on by the assessee, and the issue was answered in favour of the assessee.

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Issues: Whether Merchant Overtime Fee was leviable for examination and supervision of loading of export goods at the manufacturer's factory premises during office hours on working days by the jurisdictional Central Excise Officers.

Analysis: The services were rendered at the factory premises of the assessee within the territorial jurisdiction of the Range Officer and during normal working hours. The statutory fee regime under section 36 of the Customs Act, 1962 and Regulation 3(3)(c) of the Customs (Fees for Rendering Services by Customs Officers) Regulations, 1998 was read in the context that overtime fee is attracted where the customs officer performs work at a place not being his normal place of work or beyond the customs area. Since the supervision was within jurisdiction and during office hours, the conditions for levy of Merchant Overtime Fee were not satisfied. The Court also noted that the departmental stand was contrary to the binding instructions relied upon by the assessee.

Conclusion: Merchant Overtime Fee was not payable on the facts of the case, and the questions of law were answered in favour of the assessee and against the Revenue.

Ratio Decidendi: Overtime fee for customs-related supervision during working hours is not leviable when the services are rendered by the jurisdictional officer at the assessee's factory premises within his territorial jurisdiction and not at a place outside his normal place of work.

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