Whether reimbursement of expenses claimed by the Clearing and forwarding agent are allowed on account of "Freight and other charges"

Since in its own matter for the earlier period, department has allowed deduction of "freight charges" from the gross value, honorable tribunal has held that department can not take a different stand in case original order has not been challenged and accepted by the department itself.

However, for other expenses, reimbursement is not allowed to be deductible, demand was upheld to that extent.

Click the following link for full text of judgment: - J.N. TRADERS Versus COMMISSIONER OF CUSTOMS, TRICHY - 2007 -TMI - 1449 - CESTAT, CHENNAI

Deductibility of freight charges upheld where prior departmental acceptance exists; other reimbursed expenses disallowed as non deductible. Where departmental practice in an earlier period accepted deduction of freight charges and the original order remains unchallenged, similar freight deductions were permitted under the consistency principle; by contrast, other reimbursed ancillary expenses claimed by clearing and forwarding agents were disallowed as non-deductible and related assessment demands were upheld.