Assessable value includes fixed per-kilogram charges where the amount is not true interest on deferred payment.

An amount described as interest charges was held includible in the assessable value of imported goods under Section 14 of the Customs Act, 1962 because it was payable regardless of whether payment was made after 120 days from the air way bill date or even on receipt of the goods. The fixed charge of US $ 2.25 per kg. did not have the character of interest on deferred payment, since interest is ordinarily linked to a percentage of value rather than a fixed rate per kilogram. On that basis, the amount formed part of the transaction value and was correctly included in assessable value.

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Issues: Whether the amount described as interest charges at US $ 2.25 per kg. was includible in the assessable value of the imported goods under Section 14 of the Customs Act, 1962.

Analysis: The amount was payable irrespective of whether payment was made after 120 days from the date of the air way bill or even on receipt of the goods. Interest is ordinarily charged as a percentage with reference to value, whereas the impugned amount was fixed per kilogram. On these facts, the amount did not bear the character of interest on deferred payment and formed part of the transaction value of the imported goods.

Conclusion: The amount was correctly included in the assessable value under Section 14 of the Customs Act, 1962 and the challenge failed.

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