Judgment

Kirpal, J.-The main question which arises in all these appeals by special leave is whether while assessing customs duty payable in respect of imported goods, the customs authorities can add/include landing charges in arriving at the value of those goods. The facts which are relevant for deciding the issue are similar. For the sake of convenience we will refer to the facts in the case of Garden Silk Mills Limited in greater detail.

2. The appellants in these appeals had imported polyester yarn from abroad. The transactions for sale and purchase between the foreign supplier and the appellant company were in the nature of CIF contracts i.e. price included costs, insurance and freight charges. These con­tracts normally provide CIF price for the port of discharge. It is not in dispute that under a CIF contract the price which was paid included not only the cost of the goods but also the insurance and freight charges.

3. The customs authorities, in determining the value of the goods for the purpose of ascertaining the amount of duty payable, added to the CIF price the landing charges which were paid to the Port Trust Au­thorities. On the payment of the customs duty being made, the