Transaction value in customs valuation cannot be rejected without proof that the declared price is not the real commercial price.

Declared transaction value is the normal basis for customs assessment and cannot be rejected unless the department establishes a recognised ground under the valuation rules showing that the price is not the real commercial transaction value. Here, the revenue failed to prove that the import price was concessional or non-commercial, and the importer supported the declared value with earlier imports at similar prices. A later import and prior market enquiry were insufficient to displace the invoice value without convincing material. The enhancement of value was therefore not legally sustainable, and the declared transaction value was to be accepted.

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Issues: Whether the declared transaction value of the imported goods could be rejected and enhanced on the basis of a later import and prior market enquiry, and whether the import price was shown to be non-commercial so as to justify departure from transaction value under the Customs Valuation Rules, 1988.

Analysis: Transaction value is the normal basis of assessment unless the case falls within the exceptions in the valuation rules. The revenue did not establish that the declared price was concessional or otherwise non-commercial. The importer supported the declared price by reference to earlier imports at similar prices, and the departmental material relied upon did not displace the commercial character of the transaction. The later import from Chennai, relied upon for enhancement, was not sufficient to dislodge the declared value in the absence of convincing material showing that the invoice price was not the real transaction price.

Conclusion: The enhancement of value was not legally sustainable and the declared transaction value was to be accepted.

Final Conclusion: The assessment enhancement was set aside and the appeal succeeded with consequential relief.

Ratio Decidendi: Declared transaction value cannot be rejected for customs valuation unless the department establishes grounds recognized by the valuation rules showing that the price is not the real commercial transaction value.

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