Optional bought out items not fitted at clearance are excluded from assessable value, reinforcing separate valuation treatment.

Optional bought out items sold separately and not fitted with the main product at the time of clearance were held not to form part of the assessable value. The analysis relied on the fact that the items were offered only on an optional basis and were not attached at clearance, and it noted that the Department had accepted the same position for a later period without challenge. The value of those items was therefore excluded from assessable value, and the assessee succeeded.

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Issues: Whether the value of bought out items sold on an optional basis and not fitted with the main item at the time of clearance was includible in the assessable value.

Analysis: The bought out items were sold only optionally and were not fitted with the main item at the time of clearance. The Department had already taken a contrary view for the subsequent period in favour of the assessee, holding that such value could not be included in the assessable value, and that position remained unchallenged.

Conclusion: The value of the bought out items was not includible in the assessable value, and the appeal succeeded for the assessee.

Ratio Decidendi: Optional bought out items not fitted with the main product at the time of clearance are not includible in the assessable value.

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