Transaction value of imported goods cannot be rejected on internet price alone without cogent evidence under valuation rules.

Declared transaction value of imported computer monitors cannot be rejected merely because a manufacturer's website shows a higher internet price. The Department must rely on the valuation rules and support rejection with proper enquiry and cogent evidence that identical or similar goods were imported at a higher value. Where the record does not show payment beyond the invoice value and the only contrary material is a website price, the declared value remains unsustained and the valuation adopted below fails. As a result, confiscation, redemption fine and penalty cannot be sustained.

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Issues: Whether the declared transaction value of the imported computer monitors could be rejected merely on the basis of an internet price shown on the manufacturer's website, and whether the consequent confiscation, redemption fine and penalty could be sustained.

Analysis: The declared value could be rejected only on the grounds recognised under the valuation framework. The Department was required to conduct a proper and thorough enquiry before discarding the transaction value and to establish reliable material showing that identical or similar goods were imported at a higher price. Reliance only on a website price was insufficient, especially when the price of a commodity may vary with commercial factors and the record did not show that the appellant had paid more than the invoice value. In the absence of adequate evidence to dislodge the declared transaction value, the valuation adopted by the lower authorities could not be sustained.

Conclusion: The rejection of the transaction value was unsustainable and the confiscation, redemption fine and penalty could not stand.

Final Conclusion: The appeals succeeded and the appellant obtained consequential relief.

Ratio Decidendi: Transaction value of imported goods cannot be rejected on the basis of internet price alone unless the Department produces cogent evidence through proper investigation to justify rejection under the valuation rules.

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