Judgment:
1. The appellants imported two consignments of titanium tubes and cleared the same after payment of duty on the invoice value plus landing charges, the former having included the insurance charges relating not only to the CIF value but the duty amount also.
Subsequently they filed refund claims on the ground that the insurance amount should have been restricted to only C & F value. The claim was not accepted by the Assistant Collector and the Collector (Appeals).
Hence the present appeal.
2. The appellants are not present nor have they arranged any representation on their behalf. The appeal is accordingly taken up for disposal on merits after hearing the SDR, Shri T.R. Malik.
3. On perusal of the appeal papers and details of calculation furnished by them therein, we find that the appellants have established that they had paid insurance on the element of Customs duty also. The amount involved is Rs. 6,860/- plus Rs. 6,489/-. The insurance charges that would normally be payable to arrive at the CIF value of the goods would include the cost freight element and the insurance for delivery of the goods at the time and place of the importation. The Customs duty that is paid by the importer is after the importation is completed and it constitutes a post importation development. Any insurance amount paid on Customs duty relates to a post importation factor. It would, therefore, be not liable to be included in the assessable value which should represent the landed cost. For the foregoing reasons, we agree with the contention raised by the appellants and set aside the impugned order. The appeal is allowed.