TaxTMI 
TaxTMI 
TaxTMI 
2003 (9) TMI 692
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.... Customs Act, 1962. (b) The officers of DRI based on an intelligence that correct assessable value for the customs purposes were not declared, conducted certain investigations which revealed that M/s. Indian Oil Corporation Ltd., were paying certain charges to Cochin Port Trust which were not included in the assessable value declared to the Customs. These charges were : (i) Berth hire charges (ii) Pilotage charges (iii) Port dues (iv) Wharfage. (c) Show cause notices were issued considering these charges to be includable in the assessable value, being in the nature of pre-importation charges, incurred before the goods reach the Customs Barrier and in the normal course of operation, using maritime vessels as a mode of transpo....
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.... Since the Berth Hire charges were paid to the Port Trust and related to berthing of the vessels, which were normally paid by the vessel charterer and should be required to be taken into account for determining the freight. (iii) Pilotage charges are fixed by Port Trust and would be cost of bringing the vessel to the wharf and would therefore form part of transport costs for the goods and would be not handling charges and were to be included in value. (iv) Port dues are paid by vessel operators to use and for maintenance of the channel. They are vessel related and not cargo related and would therefore be freight charges and thus included in value. (v) As regards to Wharfage, the Commissioner found that wharfage is related to goo....
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....d. When so assessed, landing charges cover the totality of all that an importer expends to bring imported goods to land." Therefore, charges paid by the importer to bring the goods on board a vessel to land, would be included in the term landing charges. The fine distinction being arrived at by the ld. Commissioner of the charges being "goods related" or "vessel related" to arrive at his findings is not relevant. The charges herein are found to be costs required to be incurred to bring the oil on board the vessel, ashore at Kochi Port at the designated spots in Cochin Port Trust Area. These charges incurred are not for transport of the oil from part of loading up to the Port of destination. Thus cannot be Transport costs or be 'freight' a....