Case Law Details
Commissioner of Customs (Export) Vs Lift & Shift India Pvt. Ltd. (CESTAT Mumbai)
Introduction: The case of Commissioner of Customs (Export) vs. Lift & Shift India Pvt Ltd was brought before CESTAT Mumbai. The dispute revolved around the customs duty liability on the import of a barge, Aqua Float 300′, towed by the tug, Fordeco 61. The appellant argued that there was irregular value addition of equipment on board, and the tribunal was tasked with determining whether the equipment should be charged separately.
Analysis: The appellant claimed that the equipment on board the barge should be charged independently of the barge itself. However, the tribunal rejected this claim, stating that there was no evidence to support the notion that the equipment was not integral to the barge when acquired by the importer. As a result, the equipment could not be separated from the barge for separate assessment of its value.
Regarding the value of the tug, the appellant relied on values obtained from various manufacturers and statutory bodies in India. However, the tribunal found that the invoice value of the tug, as declared by the importer, was supported by evidence showing that it was purchased from M/s. QSA Marine, Singapore. The adjudicating authority determined that the charge of the tug being new did not stand, and the declared value could not be rejected.
The appeal also overlooked a fundamental distinction between adjusting transaction value for cost and services and rejecting declared prices under the Customs Valuation (Determination of Value of Imported Goods) Rules, 1988. The adjudicating authority’s determination was upheld, and no misdeclaration was found in the import.
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