Landing charges in import valuation must be taken on actuals if proved; otherwise the 1% CIF norm applies.

Landing charges form part of the assessable value of imported goods and are ordinarily to be taken on actual expenditure. The notional 1% CIF rate applies only where the importer fails to prove the actual landing charges incurred, and the burden of proof lies on the importer. Refund is admissible only if the importer establishes that the actual landing charges were lower than the amount collected on the notional basis. On the stated facts, the importer was entitled to seek refund subject to proof before the assessing authority.

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Issues: Whether landing charges forming part of the assessable value of imported goods were to be determined on actuals, with the importer bearing the burden to prove the actual amount incurred, and whether refund was admissible where the actual landing charges were shown to be less than 1% of the CIF value.

Analysis: Landing charges are a component of the assessable value of imported goods and should ordinarily be assessed on the basis of actual expenditure. The notional rate of 1% is applicable only where the importer fails to prove the actual landing charges incurred. Since the onus of establishing the actuals rests on the importer, refund can be granted only upon proof that the actual landing charges were below the amount collected on the notional basis.

Conclusion: The valuation had to be made on actual landing charges if proved, and the importer was entitled to refund upon establishing that the actual charges were less than 1% of the CIF value.

Final Conclusion: The appeal succeeded, and the importer was held entitled to seek refund subject to proof of the actual landing charges before the assessing authority.

Ratio Decidendi: Landing charges must be included in assessable value on actuals, but where actuals are not proved they may be taken at 1% of CIF value, with the burden of proof resting on the importer.

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