Page 141 - DCOM308_DCOM502_INDIRECT_TAX_LAWS

Indirect Tax Laws

Notes SECTION 13. Duty on pilfered goods. – If any imported goods are pilfered after the unloading
thereof and before the proper officer has made an order for clearance for home consumption or
deposit in a warehouse, the importer shall not be liable to pay the duty leviable on such goods
except where such goods are restored to the importer after pilferage.
SECTION 14. Valuation of goods. — (1) For the purposes of the Customs Tariff Act, 1975 (51 of
1975), or any other law for the time being in force, the value of the imported goods and export
goods shall be the transaction value of such goods, that is to say, the price actually paid or
payable for the goods when sold for export to India for delivery at the time and place of
importation, or as the case may be, for export from India for delivery at the time and place of
exportation, where the buyer and seller of the goods are not related and price is the sole
consideration for the sale subject to such other conditions as may be specified in the rules made
in this behalf :
Provided that such transaction value in the case of imported goods shall include, in addition to
the price as aforesaid, any amount paid or payable for costs and services, including commissions
and brokerage, engineering, design work, royalties and licence fees, costs of transportation to
the place of importation, insurance, loading, unloading and handling charges to the extent and
in the manner specified in the rules made in this behalf:
Provided further that the rules made in this behalf may provide for,-
(i) the circumstances in which the buyer and the seller shall be deemed to be related;
(ii) the manner of determination of value in respect of goods when there is no sale, or the buyer
and the seller are related, or price is not the sole consideration for the sale or in any other case;
(iii) the manner of acceptance or rejection of value declared by the importer or exporter, as
the case may be, where the proper officer has reason to doubt the truth or accuracy of such value,
and determination of value for the purposes of this section :
Provided also that such price shall be calculated with reference to the rate of exchange as in force
on the date on which a bill of entry is presented under section 46, or a shipping bill of export, as
the case may be, is presented under section 50.
(2) Notwithstanding anything contained in sub-section (1), if the Board is satisfied that it is
necessary or expedient so to do, it may, by notification in the Official Gazette, fix tariff values for
any class of imported goods or export goods, having regard to the trend of value of such or like
goods, and where any such tariff values are fixed, the duty shall be chargeable with reference to
such tariff value.

Explanation. — For the purposes of this section —
(a) ”rate of exchange” means the rate of exchange —
(i) determined by the Board, or
(ii) ascertained in such manner as the Board may direct, for the conversion of Indian currency into
foreign currency or foreign currency into Indian currency;
(b) “foreign currency” and ‘‘Indian currency” have the meanings respectively assigned to them
in clause (m) and clause (q) of section 2 of the Foreign Exchange Management Act, 1999 (42
of 1999).
SECTION 15. Date for determination of rate of duty and tariff valuation of imported goods.
(1) The rate of duty and tariff valuation, if any, applicable to any imported goods, shall be the
rate and valuation in force, -
(a) in the case of goods entered for home consumption under section 46, on the date on which a
bill of entry in respect of such goods is presented under that section;

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