Contract sale price governs assessable value, and equalised freight remains deductible in valuation.

For contract sales made at the buyer's premises, the Part II proforma sale price was the relevant assessable value, not the Part I ex-factory dealer price. Freight remained deductible in computing assessable value, even where recovered on an averaged or equalised basis. The lower authorities had no legal basis to deny the deduction or reject the assessable value claimed, and the issues were decided in favour of the assessee.

---

---

Issues: Whether the price adopted for contract sales in Part II proforma constituted the assessable value and whether freight, including equalised freight, was deductible while determining such value.

Analysis: Part II proforma related to contract sales made at the buyer's premises, and therefore the price applicable to such sales, not the Part I ex-factory dealer price, governed assessment for those goods. Freight is deductible in determining assessable value, whether it is collected on actual basis or on an averaged or equalised basis. The lower authorities had therefore no legal basis for denying the claimed deduction and for rejecting the assessable value claimed by the appellants.

Conclusion: The contract sale price in Part II was to be treated as the assessable value, and equalised freight was allowable as deduction. The issues were decided in favour of the assessee.

Ratio Decidendi: For contract sales, the price of such sales is the relevant assessable value, and freight remains deductible even when recovered on an averaged or equalised basis.

---