IGST demand quashed as freight, insurance and landing charges held included in CIF import price under agreements

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....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.....