Transaction value in customs valuation cannot be rejected on benchmark data alone without clear evidence

Imported goods' declared transaction value cannot be enhanced merely by relying on benchmark price or NIDB data unless the department first rejects that value on clear and cogent evidence relating to identical or similar goods, including quantity, quality, country of origin, and the time and place of import. The commentary applies the principle that transaction value remains the starting point for customs valuation and cannot be displaced without recorded reasons and supporting evidence. On that basis, enhancement was held unjustified and the declared transaction value was accepted.

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Issues: Whether the enhancement of the imported goods' value could be sustained on the basis of benchmark price and NIDB data without rejecting the transaction value on clear and cogent evidence.

Analysis: The respondents had paid duty under protest. The order under challenge had rejected the enhancement following the principle that transaction value cannot be discarded unless the department produces clear and cogent evidence relating to identical or similar goods with respect to quantity, quality, country of origin, and time and place of import. Mere reliance on benchmark price or NIDB data, without reasons for rejecting the declared transaction value, was insufficient.

Conclusion: The enhancement of value was not justified and the declared transaction value was accepted. The Revenue's appeal was rejected.

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