IN THE SUPREME COURT OF INDIA
S.P. Bharucha, R.C. Lahoti and N.
Santosh Hegde, JJ.
TRANSMISSION CORPN. OF A.P. LTD.
Versus
COLLR. OF CUS., VISAKHAPATNAM
Civil Appeal No. 2221 of 1997, decided on 7-12-1999
Valuation (Customs) - Landing charges are a component of the assessable value of imported goods - They must be assessed on the basis of actuals - But the onus of the proof thereof is on the importer - Only in the absence of the proof of actuals, landing charges may be assessed at the rate of 1% of the C.I.F. value of the imported goods - Appeal allowed - Section 14 of Customs Act, 1962. [para 4]
[Order]. - The appellants imported machinery during the period August,
1978 and January, 1980 and cleared the same against 12 bills of entry. To
facilitate the clearance thereof landing charges were calculated and paid at
the notional rate of 1% of the CIF value thereof. Subsequently, the appellants
filed a refund claim; they contended that the landing charges should be
calculated on the basis of actuals, which came to less than 1% of the CIF value
of the said goods. The Collector (Appeals) upheld their claim. He said :
“The
appellants are eligible for refund based on actual landing charges paid to the
Port Trust. The adhoc rate has been prescribed only to culminate delay is
assessment as soon as the goods are unloaded from ship. If the appellants are
able to substantiate the actual amounts paid under the head through proper
documentary evidence, the Custom House has to accept the actuals and refund the
excess duty collected.”
2.The Customs authorities went in appeal to the Customs,
Excise and Gold (Control) Appellate Tribunal. The Tribunal found that the
Collector (Appeals) was in error for the Tribunal had in an earlier order held
that landing charges at the overall rate of 1% should be added to the CIF value
of imported goods.
3.We understand from what is stated at the Bar that the
Tribunal has itself now taken a contrary view.
4.Landing charges are a component of the assessable value of
imported goods. They must be assessed on the basis of actuals. But the onus of
the proof thereof is on the importer. Only in the absence of the proof of
actuals, landing charges may be assessed at the rate of 1% of the CIF value of
the imported goods. The Collector (Appeals) was, therefore, right in the view that
he took and the Tribunal in error.
5.The appeal is allowed. The appellants shall be entitled to a
refund provided they can establish before the Assistant Collector,
Visakhapatnam, that what they actually incurred by way of landing charges was
less than 1% of the CIF value of the said goods.
6.No order as to costs.
_______