Demurrage charges and customs valuation stayed for final hearing as Tribunal waives pre-deposit

Demurrage charges were treated as a disputed component of customs assessable value under the Customs Valuation Rules, 1988, with the Tribunal noting that such charges arise only when the importer cannot clear goods in time. It held at the stay stage that includibility should be determined at final hearing and that an earlier Tribunal view supported non-inclusion. On that basis, pre-deposit of the demanded duty was waived and recovery was stayed pending disposal of the proceedings.

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Issues: Whether demurrage charges were prima facie includible in the assessable value for the purpose of customs duty and, consequently, whether pre-deposit of the demanded duty should be waived.

Analysis: Rule 9 of the Customs Valuation Rules, 1988 was invoked to support inclusion of all charges incurred up to delivery, but the Tribunal observed that demurrage is payable only when the importer is unable to clear the goods in time. At the stay stage, it found that the question of includibility had to be decided at final hearing and that the earlier Tribunal view supported non-inclusion.

Conclusion: The Tribunal granted waiver of pre-deposit and stayed recovery of the duty during the pendency of the proceedings.

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