Declared value of copper scrap import upheld where LME prime metal prices and assumed refining charges lacked evidentiary support.

Declared transaction value of imported copper scrap could be rejected only on material showing an abnormal discount or other reliable basis for doubt under the Customs (Valuation) Rules, 1988. Reliance on LME prices for prime metal was insufficient because those prices were only indicative and the goods were copper scrap, not copper. In the absence of evidence for refining charges of US$ 150 per MT, contemporaneous higher imports, or other corroboration, enhancement of value was not justified and the declared value was liable to be accepted.

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Issues: Whether the enhancement of the declared value of imported copper scrap was justified under the Customs (Valuation) Rules, 1988.

Analysis: The declared transaction value could be rejected only if there was material showing that the sale involved an abnormal discount or reduction from the ordinary competitive price. The reliance on LME prices for prime metal was insufficient because such prices were only indicative and the imported goods were copper scrap, not copper. There was also no evidentiary basis to fix refining charges at US$ 150 per MT or to show contemporaneous imports at a higher price or any other corroborative material supporting enhancement.

Conclusion: The enhancement of value was not justified and the declared value was liable to be accepted.

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