TaxTMI 
TaxTMI 
2001 (10) TMI 92
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....poration, Madras, which included CIF value, service charges plus other charges. Amongst 'other charges' were demurrage, wharfage and stock loss. The respondent-assessee filed an appeal and contended inter alia that these charges were not includible in the assessable value for the reason that they were post-importation charges and an addition of CIF value at the rate of one percent having already been made in terms of the Customs Valuation Rules, 1988 to cover the landing charges, no further addition could be made under the above heads. The appellate Commissioner accepted the contention of the appellant and allowed the appeal in respect of the above mentioned three items. However, the appeal was dismissed as regards bank charges and ocean lo....
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....nd sub-section (1A) of Section 14 of the Customs Act, 1962 (52 of 1962) and these rules, the value of the imported goods shall be the value of such goods, for delivery at the time and place of importation and shall include - (a) the cost of transport of the imported goods to the place of importation; (b) loading, unloading and handling charges associated with the delivery of the imported goods at the place of importation; and (c) the cost of insurance : Provided that (i) where the cost of transport referred to in clause (a) is not ascertainable, such cost....
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.... followed its earlier order and quoted the extracts therefrom which read as under :- "We do not agree with the further submission in the grounds that whatever has been collected by the High seas seller from the customer would form part of the value in terms of Section 14 of the Customs Act read with the Customs Valuation Rules, 1988. Wharfage charges, stock loss expenses are essentially part of the landing charges, which as the Commissioner (Appeals) has rightly pointed out, have already been added in the valuation of the goods by way of 1% of the CIF value, in terms of the said Valuation Rules, 1988" 6.Thus, it is seen that the Appellate Commissioner and the Tribunal had divergent approaches vis-a-vis the wharfage charges and the sto....
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....us High Courts that the concept of value as understood in Section 14 of the Act necessarily requires the landing charges to be included therein. Landing charges "are the expenditure incurred by an importer for bringing goods on board ship to land" (Vide Coromandal Fertilisers Ltd. v. Collector of Customs [2000 (115) E.L.T. 7]. Loading, unloading and handling charges referred to in clause (b) of Rule 9(2) are components of such landing charges. At present, in lieu of ascertainment of such actual landing charges, under clause (ii) to the proviso to Rule 9(2), specified percentage is added to the value. 8.The question whether wharfage charges and stock loss would form part of assessable value of imported goods did not fall for consideration....