TaxTMI 
TaxTMI 
2001 (9) TMI 230
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....ced now, the order dismissing the appeal is recalled and the appeals are restored to their original numbers. 2. Shri Appa Rao, learned Counsel for the appellants the issue involved in these appeals pertains to rejection of their prayer for grant of deduction with regard to three allowances as under : (a) Despatch money allowance for the quick turn around of the vessel (b) Penalty allowance given by the charter/supplier for late arrival of the vessel (c) Goodwill allowance i.e. when there are excess impurities in the concentrates supplied, the supplier allows them some allowance by charging less for the price payable. The learned Counsel submits that the....
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....decided in respect of despatch money allowance and penalty allowance by the Tribunal in the case of CC v. Coromondal Fertilizers Ltd. and in the case of IOC (supra). We are therefore, not inclined to grant adjournment of this matter and take up the appeal for disposal as per law. 7. With regard to the claims filed by the appellants we are reproducing herewith the written submissions in para 2 to 8 : 2.0 Since the matter pertains to the imports of Zinc concentrates/Lead concentrates in the year 1989, we most humbly pray the Honourable Tribunal that the Appeals may kindly be heard simultaneously, since substantial amount of more than Rs. 18 lakhs is involved, as a result of finalisation of the provisional Bills of Entry under Se....
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....cision of the Tribunal was confirmed by the Honourable Supreme Court in the case of Collector of Customs v. Coromondal Fertilisers - 2000 (115) E.L.T. 7 = 2000 (36) RLT 1 (Copy enclosed). 5.0 Penalty Allowance : 5.1 This is for late arrival of the vessel. When the vessel comes late and our production schedule goes away, the supplier/vessel owner agrees to pay some agreed Penalty from the amount payable by us. 5.2. This allowance is not paid under ordinary circumstances, as contemplated under Rule 4 of the Valuation Rules, 1988. This is made quite clear by the decision of the Larger Bench in Indian Oil Corporation v. Collector of Customs, Calcutta. - 2000 (41) R.L.T. 251 (Copy enclosed). 5.3. The word "ORDINARILY"....
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....2)(a) of the Rules requires addition of cost of transport of the imported goods to the place of importation. So, the cost paid or payable by the importer to bring the goods up to the Customs barrier must form part of the value. That cost should necessarily take within demurrage as well. Therefore, according to counsel, the Garden Silk Mills Ltd. case is authority for the proposition that the entire cost incurred for bringing the imported goods up to the Customs barrier should form the assessable value. We find it difficult to agree with this argument. First of all, the apex Court was not concerned with the demurrage paid or payable by the importer on account of the delayed clearance of the goods from the ship. Demurrage becomes payable only....