Imported vessel valuation: transport, handling and insurance to the place of importation were includible, and auction price alone was not enough.

In valuing an imported vessel, the cost of transport, handling charges and insurance from Sikka to Alang were includible in the transaction value because Alang was the place of importation for final clearance and the valuation rules required additions up to that point. The auction price alone could not be adopted as the assessable value without those statutory additions. The earlier precedent cited by the lower authority was inapplicable because it did not decide the inclusion of freight and insurance on the same issue, so the Revenue's valuation approach was sustained.

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Issues: Whether, in valuing the imported vessel, the cost of transport, handling charges and insurance from Sikka to Alang had to be included in the transaction value, and whether the auction price could be taken as the correct assessable value without such additions.

Analysis: The vessel was cleared by filing the bill of entry at Alang, which was the place of importation for final clearance. On that basis, the valuation rules required inclusion of the cost of transport up to that place, together with handling charges and insurance, in the transaction value. The earlier decision relied upon by the lower authority was held inapplicable because the inclusion of freight and insurance was not the issue decided there.

Conclusion: The additions towards transport and insurance from Sikka to Alang were rightly includible in valuation, and the auction price alone could not govern the assessable value. The appeal succeeds in favour of the Revenue.

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