Customs valuation requires proof of extra consideration; without money flow-back, declared invoice value must be accepted.

Enhanced valuation of imported goods could not be sustained without evidence of extra money flow-back to the supplier. Where the record showed no such additional consideration, the declared invoice value was required to be accepted as the transaction value, and the connected confiscation and penalty could not stand. On the identical factual matrix, the Tribunal had already rejected the valuation enhancement for lack of evidence of any extra payment, and that reasoning was applied again, resulting in setting aside of the impugned order and consequential relief to the importers.

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Issues: Whether the enhanced valuation of the imported goods, confiscation of the goods and penalty could be sustained in the absence of evidence showing any extra money flow-back to the supplier.

Analysis: The dispute turned on the valuation of imported goods. The earlier order arising from identical facts had already been set aside by the Tribunal on the ground that there was no evidence on record to show that any extra money had flowed back to the supplier. In such circumstances, the declared invoice value was required to be accepted as the transaction value.

Conclusion: The impugned order was set aside and the appeals were allowed, with consequential relief to the appellants.

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