2025-VIL-550-CESTAT-AHM-CU
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CUSTOMS CESTAT Cases

Customs – Majority Order - Valuation, floating crane charges, Includability of transportation cost, unloading charges – Appellant is engaged in the manufacture of petroleum products and imports coal at Bedi port for captive power generation. The coal was imported in gearless vessels and unloaded at the anchorage using floating cranes, as the vessels could not berth at the port jetty due to insufficient draft - Department sought to include the floating crane charges in the assessable value under Section 14 of the Customs Act and Rule 10 of the Customs Valuation Rules, 2007. The appellant contended that the floating crane charges are part of unloading/loading charges and should not be included in the assessable value - Whether the floating crane charges incurred for unloading the imported coal from the gearless vessels at the anchorage are to be included in the assessable value as part of the transportation cost under Section 14 of the Customs Act and Rule 10 of the Customs Valuation Rules, 2007 – HELD – While the Member (Judicial) observed that the matter requires detailed examination of various factual aspects, such as the stage at which the goods were cleared for home consumption, permission granted under Sections 33 and 34 of the Customs Act for moving the cargo to barges, the port of discharge mentioned in the bills of lading, and the finalization of provisional assessment under Section 18(2) of the Customs Act. Considering the Supreme Court decision in Ispat Industries case, the Member (Judicial) remanded the matter to the adjudicating authority to make these factual determinations - On the other hand, Member (Technical) held that after the amendment to Section 14 of the Customs Act in 2007, which introduced the concept of "transaction value" and specifically included the "cost of transportation" in the assessable value, the ratio of the Ispat Industries case cannot be applied. The Member (Technical) concluded that the floating crane charges are part of the transportation cost and are required to be included in the assessable value under the amended provisions - The Third Member agreed with the Member (Judicial) and opined that the matter should be remanded to the adjudicating authority to verify the factual aspects highlighted by the Member (Judicial), as the charges cannot be straightaway classified as transportation cost solely based on the amended Section 14(1) of the Act - the matter to the adjudicating authority to conduct the necessary factual verification as directed by the Member (Judicial) – the appeal is allowed by way of remand
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