Customs valuation depends on the ordinary mode of import, so sea freight alone was added and air freight excluded.

For customs valuation under Section 14 of the Customs Act, the assessable value must be based on the price at which such or like goods are ordinarily sold or offered for sale, and the freight component follows the ordinary mode of import established on the facts. Because the goods were ordinarily imported by sea and air shipment was only an exception due to urgent demand, the Tribunal treated sea freight as the relevant addition and declined to include air freight. That factual finding was not disturbed, and the valuation adopted by the Tribunal was upheld.

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Issues: Whether, for valuation of goods imported by air, air freight was required to be included in the assessable value under Section 14 of the Customs Act, 1962, or whether sea freight alone could be added.

Analysis: The goods were ordinarily imported by sea, and the air shipment occurred only as an exception because of urgent demand. On that factual basis, the Tribunal treated the ordinary sale price as the relevant price and held that the value had to be determined by adding sea freight, not air freight. No reason was found to disturb that finding of fact.

Conclusion: Air freight was not required to be included, and sea freight alone was to be added for valuation.

Final Conclusion: The valuation adopted by the Tribunal was upheld, and the appeal failed.

Ratio Decidendi: For customs valuation under Section 14, the assessable value must reflect the price at which such or like goods are ordinarily sold or offered for sale, and the applicable freight component depends on the ordinary mode of import established on the facts.

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