Customs valuation follows the revised transit price when the supplier reduces the import price before arrival.

Imported goods were valued on the revised reduced price agreed by the foreign supplier during transit, because the price change occurred before the goods reached India and was not a post-importation alteration. On those facts, the original agreed price did not govern assessable value for customs valuation. The revised price was therefore adopted, and the assessee succeeded on the valuation issue.

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Issues: Whether the transaction value of the imported goods was to be determined on the basis of the original agreed price or the revised reduced price agreed during transit.

Analysis: The price had been reduced by the foreign supplier through a telex issued while the goods were in transit, and the goods reached India only later. On those facts, the reduction could not be treated as a post-importation change. The original agreement, therefore, did not govern the assessable value in the manner suggested by the Revenue.

Conclusion: The revised price was to be adopted for valuation, and the assessee succeeded on the issue.

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