TaxTMI 
TaxTMI 
TaxTMI 
2023 (7) TMI 665
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....esham Singh & Co Pvt Ltd, and two by Shri Sarabjit Singh, Director in the appellant-company. 2. The facts, briefly, are that a tug towing a barge departed from Singapore to arrive at Kakinada on 17th April 2011 where it was converted for coastal trade and proceeded to different destinations, including Colombo, before arriving at Mumbai on 1st July 2011 whereupon these were diverted to Belapur on 2nd July 2011, where the consequence of show cause notice issued, i.e., re-ascertainment of assessable value of tug 'Resco-5' to Rs. 3,81,99,831/-, by addition, under rule 10 of Customs Valuation (Determination of Value of Imported Goods) Rules, 2007, of freight and insurance of Rs. 63,41,871/- and insurance of Rs. 1,48,607/-, and, by rejection of ....
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....moval from the shipyard and that the barge had been bought by them from the former owners. It is further submitted by him that they had proceeded with intention to register the vessels in India for which they had obtained approval of the Indian Registrar of Shipping (IRS) for change in name as evidenced by appropriate certificate of registry. It is also submitted that the vessel had arrived for offloading of cargo and, thereafter, proceeded to Mumbai for further processing of registration formalities. It is contended by him that the revising of assessable value was entirely incorrect inasmuch as the declared value represented purchase price and, thereby, the transaction value. According to him, the tug arrived on its own propulsion that did....
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....t them. 6. Learned Authorised Representative submitted that the appeals of Revenue should be allowed inasmuch as the value declared in the bill of entry was consequent upon action taken against the vessel when it berthed at Belapur. He contended that the entire purpose of arriving under Indian flag at Kakinada was with intent to evade duties of customs while operating in and around territorial waters. Accordingly, he urged that the failure to file import general manifest should also be viewed seriously. 7. We find that the age of both the tug and the barge are irrelevant in the proceedings which rests upon non-fulfillment of requirement pertaining to declaration of cargo brought into India in import general manifest and incorrectness of t....
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....Rules, 2007; the first sets out the gold standard of transaction value and default acceptance of declared value thereby; the second, in circumstances in which the declared value does not conform to the transaction value, for recourse to be had to rules 4 to 9 therein; the third permits, as per rule 3(1) therein, addition of cost of services to imported goods, even if strictly not in accordance with constitutional assignment of customs duties to be levied on goods, because of the inextricable connection with the goods. 11. Before proceeding to invoke the authority of rule 3(4) of Customs Valuation (Determination of Value of Imported Goods) Rules, 2007, it is necessary to place the importer on notice of intent to reject the declared value un....
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.... in rule 7, rule 8 and rule 9 of Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 for such adjustment, precludes lack of authority of law for the addition of freight to the barge. Therefore, we find that the recourse to rule 3(4) of Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 has not been in conformity with the framework of the mechanism for resort to section 14(2) of Customs Ac, 1962. Insofar as the tug is concerned, the declared value had been accepted and it is only the addition of freight and insurance that was in question. We have premised supra that recourse to rejection of declared value is an assessment exercise arising from the specific circumstances in which rule 12 provides the....