No Demurrage charges Includable in Custom valuation of imported goods for purpose of charging Customs duty: CESTAT [Read Order]

The Ahmedabad bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that demurrage charges were not includable in the custom valuation of imported goods to charge customs duty. 

Sanghi Industries Ltd, the appellant assessee appealed against the order passed by the Commissioner (Appeals) for involving the issue of whether the Demurrage charges paid by the assessee should be included in the assessable value of imported “Steam Coal”. 

Manish Jain, the counsel for the assessee contended that the demurrage charge was not includible in the assessable value of the immovable goods and the demand raised by the revenue against the assessee was not as per the law and liable to be deleted. 

Sanjay Kumar, the counsel for the department relied on the decisions made by the lower authorities and contended that the demurrage charges were includible in the assessed value of immovable goods. 

The Bench observed that in the case of Vinyl Chemicals (India) Ltd. V. Commissioner of Customs, the court held that the demurrage charge is not includible in the assessable value of the immovable goods. 

The two-member bench comprising Ramesh Nair (Judicial) and Raju (Technical) quashed the demand raised by the revenue while allowing the appeal filed by the assessee. 

To Read the full text of the Order CLICK HERE

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