LDT Unrelated to Assessable Value of Goods: CESTAT Quashes Differential Duty Demand

Hussain Sheth Ispat Vs Commissioner of Customs (CESTAT Ahmedabad) Introduction: The Central Excise and Service Tax Appellate Tribunal (CESTAT) Ahmedabad has made a landmark judgment in the case of Hussain Sheth Ispat Vs Commissioner of Customs. The tribunal ruled that Light Displacement Tonnage (LDT) is not a relevant factor in determining the assessable value of imported goods, thereby quashing the differential duty demand. The ruling highlights the irrelevance of LDT when the agreed contract price between parties is a lump sum for the entire vessel, not in proportion to the vessel’s LD...