COMMISSIONER OF CUSTOMS CHENNAI Vs. YESES INTERNATIONAL

JUDGEMENT

(1.) The respondent herein imported certain consignment of superior kerosene oil which was sold to it by Indian Oil Corporation on high sea sale basis. The controversy in this appeal is about the assessable value of the imported goods under Section 14 of the Customs Act 1962 . The Assistant Commissioner of Customs assessed the value on the basis of final invoices raised by Indian Oil Corporation, 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 per cent 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 losses with which we are not concerned. The appeal filed by the Revenue in CEGAT, Chennai Bench, was dismissed on 12-1-1999 following its earlier decision in final order Nos.84 and 85 of 1998 dated 16-1-1998. The learned counsel appearing for the parties are not in a position to tell us whether that order of the Tribunal has become final. Be that as it may, the legality of the Tribunal's order dated 12-1-1999 dismissing the Revenue's appeal has been assailed in this appeal by the Revenue.

(2.) According to Section 14 (1) of the Customs Act, the value for the purpose of charging customs duty on imported goods shall be deemed to be the price at which they are ordinarily sold or offered for sale for delivery at the time and place of importation, in the course of international trade provided that the seller and buyer have no mutual business interests and price is the sole consideration for the transaction. However, sub-section (1A) which was added to Section 14 in the year 1988 provides as follows :-

(3.) It is not in dispute that those provisions are applicable to the present case as the importation had taken place in 1995.