TaxTMI 
TaxTMI 
2017 (9) TMI 926
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....omestic sector and continue the service in international sector also. The Aviation Turbine Fuel (AFT) is filled by the appellant for domestic flight operation. When the same aircraft is to embark on an international travel, the ATF in the fuel tank is considered as cleared outside India and when the aircraft returns from foreign trip, the ATF left over/available in the aircraft is considered to be an import item subjected to customs duty as per the applicable rates. The appellants were maintaining accounts of these transactions and at the end of the month, they submitted detailed flight-wise information including customs duty liability, payment of such duty, flight details including quantity of ATF on which duty has been paid. This practice....
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....shed for filing bill of entry in the case of ATF. The appellants have been discharging customs duty on a regular basis in respect of remnant ATF imported as part of fuel in the tank. All details have been submitted to the Customs Authorities on a regular monthly basis. This practice has been continuing for quite sometime. The Ministry vide letter dated 24.4.1971 clarified as to the procedure for discharging duty on left over ATF. Considering the background explained in the said letter, the procedural provisions relating to the duty payment on left over ATF should be construed liberally. (B) There is no machinery provision laid down to be followed in such situations. In fact, the Mumbai Commissionerate issued detailed procedure for filing ....
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....ontainers and stores are assessed to duty, no separate freight element is added. In fact, when the aircraft itself is imported in its own propulsion, no addition of freight is added to the value of the aircraft. The Appraising Manual while dealing with such import of aircraft in own propulsion clarified that Section 14 value can be arrived without further addition of freight as the aircraft depreciates on such travels. (E) The appellants are eligible for exemption under notification no.151/94-Cus dated 13.07.2014. The Original Authority denied the concession only on the ground that procedural requirement, like filing of bill of entry, was not followed by the appellant. (F) No penalty or demand for extended period is sustainable in the pre....
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....aft landing in India from an international trip. The duty liability on such ATF is not under dispute. However, its valuation, more specifically, addition of freight element on notional basis to arrive at the value of such ATF is in dispute. The Original Authority held that the remnant ATF is transported by the aircraft and as such, as the actual freight is not ascertainable, a notional freight in terms of Rule 10(2) is to be added to arrive at the assessable value of ATF. We note that the aircraft requires ATF for its propulsion. As per the Civil Aviation Regulating requirements and also for safety, aircraft caries adequate amount of fuel in its flight. The consumption of fuel depends on various factors. Factually, when the aircraft complet....
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.... ascertainable. We note that there is no freight element involved and hence, there is no application for Rule 10 (2). 8. The Hon'ble Supreme Court in Wipro Ltd. (2015) 14 SCC 161, held that normally, the value of imported goods has to be the transactional value which means the price "actually paid" or "payable" for the goods imported. When the value of transaction could not be determined then the Rules are applied to arrive at the value. The endevour is to have closest proximity with the actual price. Dealing with addition of loading and handling charges at 1% on notional basis as per Rule 9 of Valuation Rules, the Apex Court held that when the actual cost towards handling charges are available, notional addition is not legally tenable. It....