Related-party customs valuation requires proof that the relationship influenced price before rejecting the declared value.

In customs valuation of imported gold bars, a related-party relationship does not by itself justify rejection of the declared value. The declared price remained acceptable because the record showed no extra payment, no foreign remittance, no duty implication, and no sale transaction affecting the price. The decisive point was that the relationship was not shown to have influenced the declared value, so Revenue had no basis to disturb it and the order accepting the value was sustained.

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Issues: Whether the declared value of imported gold bars was liable to be rejected on the ground that the importer and supplier were related parties.

Analysis: The import of gold bars and the export of gold plating chemicals were approved by the Reserve Bank of India. The record showed that no extra payment was made, no foreign remittance was involved, no duty implication arose, and there was no sale transaction affecting price. In these circumstances, the relationship between the parties did not, by itself, establish that the declared value was influenced.

Conclusion: The declared value was rightly accepted and the Revenue had no case for interference.

Final Conclusion: The Revenue appeal failed and the order accepting the declared value was sustained.

Ratio Decidendi: In a customs valuation dispute, a related-party relationship does not justify rejection of the declared value unless it is shown that the relationship influenced the price.

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