Despatch money refunded from freight was excluded from customs assessable value, making the duty refund claim maintainable.

Freight paid under the contract and later refunded as despatch money was treated as reducing the effective freight cost, so the refunded amount was not includible in the assessable value for customs duty. On that basis, the excess duty paid was refundable and the refund claim was maintainable.

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Issues: Whether freight refunded by way of despatch money could be excluded from the assessable value for customs duty and whether the refund claim was maintainable.

Analysis: The freight charges had been paid under the contract and a part of that freight was later refunded as despatch money. Following the earlier view that despatch money arising from early unloading reduces the effective freight cost, the refunded amount could not form part of the assessable value. The resultant excess duty paid was therefore refundable.

Conclusion: The refund claim was proper and the amount returned as despatch money was not includible in the assessable value.

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