Valuation of Fuel & Diesel Oil for Coastal Vessel Runs using ‘Residual Method

Seatrans Ship Management Service Pvt. Ltd. Vs Commissioner of Customs (CESTAT Kolkata) CESTAT Kolkata held that valuation of fuel oil and diesel oil used during coastal run of the vessel is to be done as per the ‘Residual Method’ prescribed under rule 9(1) of the Valuation Rules. Facts- The Appellant acted as agent for M/s. SPUR Shipping Pte. Ltd., who has chartered a vessel MV ZHENGKAI arrived at Paradip port for discharge of import cargo and on completion of discharge, the vessel was converted from ‘foreign run’ to ‘coastal run’ for carriage of coastal cargo viz. Thermal Coal fro...