Customs valuation of imported vessel: original sale agreement price prevails, while later lower terms and buying commission deduction were rejected.

For customs valuation of an imported vessel, the contemporaneous original memorandum of agreement fixing the sale price for delivery at Alang was treated as the relevant transaction value because the vessel's description and essential particulars remained unchanged. A later lower agreement did not justify reducing the assessable value, and a 3% buying commission was held impermissible on the facts recorded. The operative effect is that the assessable value must be based on the original agreement price under the valuation rules, rather than on a subsequent reduced arrangement or unsupported deduction.

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Issues: Whether the assessable value of the imported vessel was to be determined on the basis of the original memorandum of agreement fixing the sale price for delivery at Alang, and whether a reduction on account of buying commission or the later lower agreement price was permissible under the Customs valuation scheme.

Analysis: The vessel was sold under the earlier agreement for delivery at Alang in India, and the description and essential particulars of the vessel remained unchanged. On the facts recorded, the later agreement did not justify a reduction from the earlier agreed price. The valuation adopted by the lower authority was not accepted, and the deduction of 3% buying commission was found to be impermissible in the circumstances. The price under the original agreement was treated as the relevant transaction value for customs purposes under the valuation rules.

Conclusion: The assessable value had to be taken on the basis of the original agreement price, and the Revenue's challenge to the reduction succeeded.

Ratio Decidendi: Where the contemporaneous sale agreement reflects the real transaction for importation and the goods remain materially unchanged, the agreed price constitutes the assessable value and cannot be reduced on the basis of a subsequent lower arrangement or unsupported commission deduction.

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