Customs valuation charges rule read down: proviso applies only when actual loading and handling charges are unascertainable.

A challenge to notice under the Customs Act and to Rule 9(2)(b) of the Customs Valuation Rules on loading, unloading and handling charges was covered by Supreme Court precedent. The Court noted that proviso (ii) to Rule 9(2), inserted by the 5 July 1990 notification, was unsustainable in its existing form and had to be read down so it applied only where the actual charges under clause (b) were not ascertainable. The challenge succeeded, and the appeal was allowed in terms of that ruling, with the Single Judge's order set aside.

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Issues: Challenge to the notice issued under Section 28(1) of the Customs Act, 1962, and the validity of Rule 9(2)(b) of the Customs Valuation (Determination of Price of Imported Goods) Rules, 1988, in relation to loading, unloading and handling charges.

Analysis: The challenge stood covered by the Supreme Court's ruling that proviso (ii) to sub-rule (2) of Rule 9, as introduced by Notification dated 5-7-1990, was unsustainable in its existing form and required to be read down so that it applied only where the actual charges referred to in clause (b) were not ascertainable.

Conclusion: The challenge succeeded and the appeal was allowed in terms of the Supreme Court's decision, with the learned Single Judge's order set aside.

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