Assessable value excludes separate service charges for insurance and despatch facilities when they are distinct from the goods' price.

Extra amounts collected as service charges, described as insurance charges, were treated as remuneration for arranging insurance and despatch facilities rather than part of the price of the manufactured goods. As the collection was not shown to represent value attributable to the goods or consideration paid to enhance marketability, it was held to be distinct from assessable value. The result was that the charges were not includible in assessable value and the demand for differential duty was not sustainable.

---

---

Issues: Whether the extra amount collected as service charges, described as insurance charges, was includible in the assessable value of the manufactured goods for levy of duty.

Analysis: The extra amount was found to be collected as remuneration for services such as arranging insurance and despatch facilities. It was not shown to be part of the value of the goods, nor to have been paid to enhance the marketability of the product. The collection was treated as distinct from the price of the manufactured goods.

Conclusion: The service charges were not includible in the assessable value and the demand for differential duty was not sustainable.

---