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2017 (5) TMI 931 - AT - CustomsValuation - Credit Insurance Charges - includibility - rate of insurance to be included - Held that: - Rule 10 of the Customs Valuation Rules read with Section 14 of the Customs Act 1962 provides for addition of an amount at the rate of 1.125% of the free on board value of the goods plus the cost of transport in cases where cost of insurance is not ascertainable. However such loading is required to be done only in respect of the transaction value of the goods for import. The “Credit Insurance Charges” have been paid by the appellant to its principal to cover the insurance in respect of payments to be received by the appellant for supply of goods made to customers in India - It is also evident that such goods are those which are manufactured by the appellant in India - there is absolutely no justification to add amounts towards the “Credit Insurance Charges” to the value of goods imported by the appellant from its principal. To arrive at the correct nature of the credit insurance charges, it will be necessary to verify the terms of the insurance policy entered into by the principal with insurance company M/s. Euler Herms - appeal allowed by way of remand for such verification.
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