COMMISSIONER V. ESSAR STEELS LTD. 2003 (158) E.L.T. A184 (S.C.)

 

Valuation (Customs) — ‘Freight’ and Hire charges — Distinction between

 

The Supreme Court Bench comprising Hon’ble Mr. Justice S. Rajendra Babu and Hon’ble Mr. Justice G.P. Mathur on 15-9-2003 admitted the Civil Appeal Nos. 6940-6949 of 2003 filed by Commissioner of Customs, Ahmedabad against the CEGAT Order Nos. 844-853/03-C-I, dated 27-3-2003 and reported in 2003 (156) E.L.T. 42 (Tribunal) (Essar Steels Ltd. v. Commissioner).

 

The Appellate Tribunal in its impugned order had held that reimbursement of amount by importer to appellant for hire of vessels on time charter basis on behalf of importer, is not ‘freight’ but hire charges. The element of freight added @ 20% on notional basis in the case of the first two vessels and the freight declared in the case of other four vessels which has been actually paid, alone can be added to the assessable value.

[Commissioner v. Essar Steels Ltd. - 2003 (158) E.L.T. A184 (S.C.)]