1999 (12) TMI 59 - SC - Customs

Court sets aside Tribunal's order on landing charges, rules no additional charges, directs costs to appellants.

The Court allowed the civil appeals, setting aside the Tribunal's order. It held that when landing charges are assessed as a percentage, they encompass ... Valuation (Customs) - Landing charges Issues involved: Assessment of landing charges for Customs duty and addition of stevedoring charges to the value of imported goods.Assessment of Landing Charges: The appellants imported rock phosphate and sulphur for manufacturing fertilizers, brought to India in chartered ships. The Customs authorities assessed landing charges at 1.4% of the CIF value of the goods. The Assistant Collector separately added stevedoring charges based on various factors, including unloading labor charges, port hire charges, and administrative overheads.Appellate Proceedings: The Appellate Collector considered landing and stevedoring charges as the same, but the Customs authorities challenged this before the Tribunal. The Tribunal held that the 1.4% landing charges did not include unloading charges from ship to berth, which needed to be added separately, similar to the Assistant Collector's calculation.Legal Interpretation: The Customs authorities argued that stevedoring charges should be added despite the 1.4% landing charges already assessed. However, the Court found this argument unsatisfactory, stating that landing charges, assessed at a percentage of the goods' value, cover all expenses incurred to bring goods to land.Conclusion: The Court allowed the civil appeals, setting aside the Tribunal's order. It held that when landing charges are assessed as a percentage, they encompass all aspects, and no additional charges like stevedoring should be added. The respondents were directed to pay the costs of the appeals to the appellants.