The Apex Court in case of Commissioner of Central Excise, Mangalore v. Mangalore Refinery & Petrochemicals Ltd. {(2016) 66 taxmann.com 108 (SC)} has held that Demurrage charges are not includible in assessable value of imported goods.

In the said case, the revenue contended that demurrage charges paid by the assesse are includible in the assessable value for the levy of custom duty. Demurrage charges are incurred after the goods reached at Indian Ports, thus it is a post-importation event; relying on the case of Commissioner of Customs v. Essar Steel Ltd. (2015) 51 GST 181/58 taxmann.com 191, The Supreme Court held that demurrage charges cannot make part of the transaction value.