Deductibility of freight and insurance charges failed where original invoices and proof did not support the claimed assessable value reduction.

Deductions from assessable value for freight, insurance and turnover tax were rejected because the assessee failed to produce original invoices or other satisfactory proof showing that the additional collections represented those deductible charges. The authorities found that the amounts were collected as handling and forwarding charges and were not shown to be relatable to the claimed deductions. In the absence of substantiation before the original and appellate forums, the claim could not be accepted at the appellate stage, and the appeals were rejected.

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Issues: Whether the deductions claimed towards freight, insurance and turnover tax could be allowed from the assessable value in the absence of original invoices and satisfactory proof.

Analysis: The appellants admitted that the amounts were collected as handling and forwarding charges, but were unable to produce the original invoices to establish that the collections represented freight, insurance and turnover tax deductible from assessable value. The lower appellate authority had already found that the extra amounts collected were not relatable to freight, insurance and turnover tax, and the claim remained unsubstantiated before the original and appellate authorities. In the absence of proof, the claimed deductions could not be accepted at the stage of appeal.

Conclusion: The deductions from assessable value were not allowed, and the appeals were rejected.

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