COMMISSIONER V. HINDUSTAN ZINC LIMITED 2003 (156) E.L.T. A336 (S.C.)

 

Valuation (Customs) — Penalty paid by (1) vessel owner for late arrival of ship whether permissible deduction? Valuation (Customs) — Despatch money allowance for quick (2) turn around of vessel whether permissible deduction?

 

The Supreme Court Bench comprising Hon’ble Mr. Justice M.B. Shah and Hon’ble Mr. Justice D.M. Dharmadhikari on 20-12-2002 granted leave in Petition for Special Leave to Appeal (Civil) Nos. 12637-12648 of 2002 filed by Commissioner of Customs, Visakhapatnam against the CEGAT Order Nos. 1666-1676/2001, dated 25-9-2001 and reported in 2002 (150) E.L.T. 500 (Tri. - Chennai) (Hindustan Zinc Limited v. Commissioner). While granting leave, the Supreme Court passed the following order :-

 

“Leave granted.

No orders on interim relief.

To be heard alongwith C.A. No. 2342-2362/2001.

It would be open to the respondents to file counter affidavit”.

 

The Appellate Tribunal while following a Larger Bench decision of the Tribunal in the case of Indian Oil Corporation Ltd. [2000 (122) E.L.T. 615 (Tribunal - LB)] had held that penalty paid by vessel owner for late arrival of the ship is permissible deduction under Section 14 of Customs Act, 1962.

The Tribunal also held that despatch money allowance for quick turn around of the vessel is permissible deduction under Section 14 of Customs Act, 1962.

[Commissioner v. Hindustan Zinc Limited - 2003 (156) E.L.T. A336 (S.C.)]