FOR destination sales: freight and insurance up to buyer's premises form part of assessable value.

In an FOR destination contract, where sale is completed only on delivery at the buyer's premises and ownership passes at that point, the place of removal is the buyer's premises. Freight, insurance and allied transport-related expenses incurred up to delivery therefore form part of the assessable value. Applying the same principle as in the appellant's earlier case on similar facts, the tribunal upheld inclusion of those charges in valuation and rejected the challenge.

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Issues: Whether, on the facts of a FOR destination contract, freight, insurance and allied transport-related expenses incurred up to delivery at the buyer's premises were includible in the assessable value.

Analysis: The factual matrix and the contractual terms showed that the sale was not concluded at the factory gate but only when the goods reached the buyer's premises in deliverable condition. Where the transaction is on FOR basis and ownership passes at the destination, the place of removal is the buyer's premises, and the expenses incurred for transportation and insurance up to that point form part of the assessable value. The earlier order in the appellant's own case had already applied the same principle on substantially identical facts.

Conclusion: The includability of freight, insurance and related charges in the assessable value was upheld, and the appeal failed.

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