Transaction value in import valuation must be accepted unless the Revenue proves non-commercial considerations or statutory exceptions.

Declared transaction value of imported windmill blades could not be rejected merely on suspicion or on an unsupported Chartered Engineer's report. The Revenue failed to prove that the invoice price was influenced by any extra-commercial consideration, and the statutory exceptions for discarding transaction value were not shown to apply. The blades were old, unused and sold on a distress-sale basis at the invoiced price, which supported acceptance of the declared value. The freight omission was later corrected during investigation, differential duty was paid before the show-cause notice, and no mala fide was established. The demand, confiscation and penalty were therefore unsustainable, and the appeal succeeded.

---

---

Issues: Whether the declared transaction value of the imported windmill blades could be rejected and the assessable value re-determined on the basis of the Chartered Engineer's report and alleged non-disclosure of freight charges.

Analysis: The goods were found to have been manufactured years earlier, were not shown to have been put to use, and were sold on a distress-sale basis at the invoiced price. The Department did not establish that the declared price was influenced by any extra-commercial consideration. The burden to disprove the declared transaction value lay on the Revenue, and that burden was not discharged. The Chartered Engineer's report did not adequately disclose the basis of market enquiry, and the facts did not justify rejection of the invoice value under the valuation rules. As to freight, the omission was corrected during investigation and differential duty was paid before the show cause notice; no mala fide was found.

Conclusion: The declared transaction value was required to be accepted, the enhancement of value was unsustainable, and the demand, confiscation and penalty could not be sustained.

Final Conclusion: The appeal succeeded and the impugned order was set aside with consequential relief.

Ratio Decidendi: In the absence of proof that the declared import price is affected by non-commercial considerations or that the statutory exceptions to acceptance of transaction value are attracted, the transaction value must be accepted and cannot be rejected merely on suspicion or on an unsupported valuation report.

---