Customs valuation requires contemporaneous import prices; later Bills of Entry and a standing order cannot justify enhancement.

Customs valuation of imported knitted velvet fabric could not be sustained on the basis of later Bills of Entry and a standing order fixing a higher rate for four-way pile fabric. The valuation under Rule 8 of the Customs Valuation Rules, 1988 read with Rule 14(1) of the Customs Act, 1962 had to rest on contemporaneous imports from the relevant period, and comparisons with imports made much later were improper. The standing order, by itself, did not justify enhancement. The impugned orders were set aside and the matter was remanded for fresh consideration using imports from the relevant period.

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Issues: Whether the valuation of imported knitted velvet fabric could be sustained by relying on prices of comparable goods imported in later periods and on a standing order, and whether the matter required fresh consideration on the basis of imports made during the relevant period.

Analysis: The assessment was based on Rule 8 of the Customs Valuation Rules, 1988 read with Rule 14(1) of the Customs Act, 1962 by adopting later Bills of Entry and a standing order fixing a higher rate for four way pile fabric. The Tribunal held that such reliance was unjustified because the import in question was of September-November 1999, while the comparison was drawn from October 2000 imports. The proper basis for valuation had to be the price of goods imported during the relevant period, and the standing order could not by itself justify the enhancement.

Conclusion: The impugned orders were set aside and the matter was remanded to the adjudicating authority for fresh consideration on the basis of contemporaneous imports from the relevant period.

Ratio Decidendi: Customs valuation must be determined with reference to contemporaneous imports of the relevant period, and not by relying solely on later import prices or a standing order.

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