Freight and Insurance Included in Assessable Value for FOR Destination Sales: CESTAT

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has upheld the practice of including freight and insurance costs in the assessable value of goods for sales that are conducted on a destination basis. This ruling clarifies that for transactions where the price is inclusive of delivery to a specific destination, the costs associated with transporting and insuring the goods up to that point are considered part of the value on which customs duty is to be computed. This ensures a more accurate and comprehensive valuation of imported goods, reflecting the total cost incurred to bring the goods to the point of sale or delivery in the importing country.