HC holds that Customs authorities cannot add more than 20% of FOB value as ‘freight charges’ to arrive at assessable value of imported goods, under Rule 10(2)(a) of Customs Valuation (Determination of Value of Imported Goods) Rules; Notes that assessee had imported goods with FOB value of Euro 19,855.60 and air freight of Euro 10,648.34 and while it sought to add freight amount of EURO 3,900 i.e. 20% of FOB value to invoice value.
Assessing Officer directed inclusion of balance freight amount of EURO 6,748.34 as miscellaneous charges; Remarks, irrespective of fact whether assessee filed any proof of document viz., protest letter or representation against excess payment, when the Statute empowers such cost, it shall not exceed 20% of FOB value of goods;
CESTAT’s remand order, with a rider whether the miscellaneous charges were declined by assessee, as otherwise, added at instance of Assessing Officer in course of assessment proceedings, is contrary to the statutory rule; Consequently, sets aside the order passed by CESTAT and remands matter back to Commissioner (Appeals) to reassess the Bill of Entry in accordance with the statute : Madras HC
Citation: [TS-127-HC-2018(MAD)-CUST]