TaxTMI 
TaxTMI 
2003 (8) TMI 374
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....t was possible to hear and decide the appeals themselves at this stage; hence after waiving the pre-deposit, we proceed to dispose of the appeals themselves with the consent of both sides. 2. The facts of the case are that M/s. I.O.C.L., is a public sector company, acts as canalizing agency for the oil industry for import of petroleum products. Various consignments of petroleum products on imports were bonded on arrival. I.O.C.L. were filing Into Bond Bills of Entry for warehousing on arrival of the imported goods and Ex-Bond Bills of Entry were being filed from time to time for removal of goods on payment of Customs Duty leviable thereon, the bills of entry were assessed provisionally. Show cause notice's proposing recovery of differ....
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....2000, a portion of the freight was being paid by the Oil Coordination Committee (OCC) from the Oil Pool Account. Based on the above statements the Commissioner of Customs (Import), Mumbai addressed a letter dated 10-1-2000 to the Additional Secretary (Petroleum), New Delhi to furnish the information relating to year-wise data from 1994 to March, 1998 regarding payments made by the OCC to SCI towards freight. Vide letter dated 21-2-2002, M/s. I.O.C. Ltd. were also called upon to provide similar information and this letter was followed by another letter dated 25-2-2000, to which they replied, requesting the Customs authorities to obtain such information from SCI/OCC. By letter dated 20-7-2000, M/s. IOC were informed that the details of cost o....
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....t which should form part of the assessable value of the imported consignments and the ground raised in the show cause notice is that; apart from the freight paid to Shipping Corporation of India (the only shipping company involved in the present import), certain additional amount has been paid by Oil Co-ordination committee as subsidy towards freight to Shipping Corporation of India. According to the show cause notice, since the details of the subsidy were not being furnished, freight is estimated at 20% in terms of Proviso (1) of Rule 9(2) of Customs Valuation Rules, 1988. 6. The appellants had produced before the Commissioner a letter dated 9-11-2000 of OCC (page No. 51) of paper book filed by IOC. The letter is reproduced herein be....
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....nce), OCC, New Delhi. Sub : Customs duty demand in respect of petroleum products This has reference to messages from HPCL and IOC seeking confirmation from OCC that OCC has not made any payments to SCI towards freight for the petroleum product imports made by oil companies during the period from April, 1994 to April, 1998. It is reiterated that during the period from April, 1994 to April, 1998 there was no practice in vogue in OCC to release payments to SCI towards freight for the petroleum product imports made by oil companies. It may please be explained to Customs that all payments towards freight for the Petroleum products imported by oil companies are made by oil companies themselves. 8. Shipping Corporation of India vide lette....