2023-VIL-1063-CESTAT-BLR-CU
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CUSTOMS CESTAT Cases

Customs – Sections 14 and 28 of Customs Act, 1962 – Rule 10(2) of Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 – Import of aviation turbine fuel – Determination of duty liability – Appellant imported Aviation Turbine Fuel (ATF) for domestic run and accordingly, customs duty and countervailing duty and other duties were to be paid on ATF – Since Appellant failed to pay customs duty, Department issued show cause notice under Section 28 of the Act – Commissioner confirmed demand of customs duty – Whether cost of transportation, loading/unloading/handling charges and insurance has to be added to transaction value for determining duty liability – HELD – There was no dispute on levy of duty, as Appellant had admitted duty levy on ATF remaining on board after international leg and consumed in domestic leg for relevant periods noted in show-cause notice – Dispute was only with regard to valuation under Section 14 of the Act – Commissioner confirmed duty amount after adding cost of transport, insurance and landing charges to transaction value and determine duty accordingly – Larger Bench in case of Jet Airways concluded that none of these charges can become part of transaction value as per Rule 10(2) of the Rules – Matter is remanded to Commissioner to re-determine duty liability after taking into consideration the Larger Bench decision in case of Jet Airways (India) Ltd. – Appeal is allowed
Issue 2: Countervailing duty – Applicability of exemption notification – Whether benefit of Nil rate of duty on CVD is available to Appellant vide Notification 21/2002 as amended by Notification 119/2008 – HELD – Exemption notification should be interpreted strictly – Burden of proving applicability would be on assessee to show that his case comes within parameters of exemption notification – Appellant claimed benefit of ‘Nil’ rate of duty on CVD in view of fact that (-) is mentioned against Column 4 at Sl.No.77C of Notification No.119/2008-Cus. – As seen from above Notifications, it is very clear that whenever there is no duty to be levied, Notification clearly shows ‘Nil’ instead of (-), therefore, one cannot assume that (-) means Nil, but it only means there is no change in rate of duty as mentioned in tariff – Notification always intended to state that wherever there was (-), intention of Notification was not to read ‘Nil’ into it – Benefit of Nil rate of duty on CVD is not available to Appellant – As submitted by Appellant, duty is demanded at rate of 10% irrespective of change in rate of duty – Matter stands remanded for redetermination of duty
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