CESTAT allowed the appeal, setting aside the demand of IGST, interest and penalty arising from alleged short-payment on freight, insurance and landing charges for imports from Bhutan. The Tribunal found that, under the distributorship and FOR agreements, the invoice prices were on CIF/all-inclusive terms, covering transportation, insurance, loading and forwarding up to the buyer's destination. Certificates from the transporter and a clarification from the Bhutan supplier confirmed that no additional freight or insurance was charged to the appellant. Consequently, the allegation of non-inclusion of freight, insurance and landing cost in assessable value, as well as suppression or misstatement justifying penalty or extended limitation, was rejected.
CESTAT allowed the appeal, setting aside the demand of IGST, interest and penalty arising from alleged short-payment on freight, insurance and landing charges for imports from Bhutan. The Tribunal found that, under the distributorship and FOR agreements, the invoice prices were on CIF/all-inclusive terms, covering transportation, insurance, loading and forwarding up to the buyer's destination. Certificates from the transporter and a clarification from the Bhutan supplier confirmed that no additional freight or insurance was charged to the appellant. Consequently, the allegation of non-inclusion of freight, insurance and landing cost in assessable value, as well as suppression or misstatement justifying penalty or extended limitation, was rejected.
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