1998 (5) TMI 128

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....lace of importation has to be included in the value. He observed that the term "cost" means `to involve an expenditure of'. When despatch money is earned and when that is deducted from the freight, the resultant amount paid as freight to the cost of transport. In this regard he has also drawn support from Tribunal's ruling rendered in the case of Collector of Customs, Madras v. Coromandal Fertilizers Ltd. - 1998 (33) E.L.T. 451 (Tribunal) wherein it has been held that despatch money should be deducted from the cost of transport. The order of the Tribunal also states that demurrage money should be added to the cost of transport. Whether it is in the nature of penalty or otherwise, it is an element which goes into the value of the goods when ....

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....rounds of appeal in that direction and further pointed out that the appeal will be invalid if an appeal memorandum does not contain verification as prescribed. On imports he submits that the despatch money is a part of freight and they are entitled to have deducted from the assessable value and the Commissioner has rightly given such conclusion. He also refers to the Rule 9(2)(a) of the Customs Valuation (Determination of Price of Imported Goods) Rules, 1988 wherein it has been clearly laid down that " the cost of transportation of imported goods to the place of importation"; he gave an example that where a ship leaves the port in time after despatching the cargo, the charterer is given a rebate of freight and that is known as `despatch mon....