Declared transaction value cannot be rejected solely for slightly higher contemporaneous imports without evidence discrediting the invoice price.

Declared transaction value cannot be rejected merely because contemporaneous imports were at a slightly higher price. Where the import is supported by the purchase order, sales order confirmation, commercial invoice and bill of lading, and there is no evidence of any flow back of money or other material discrediting the invoice price, the declared value remains acceptable. A marginal price variation, by itself, is insufficient to undermine genuineness of the transaction value. The rejection of the declared value and enhancement of assessable value were therefore not justified, and the issue was decided in favour of the assessee.

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Issues: Whether the declared transaction value of imported goods could be rejected and the assessable value enhanced solely on the basis of contemporaneous imports at a slightly higher price.

Analysis: The imports were supported by the purchase order, sales order confirmation, commercial invoice and bill of lading, all reflecting the declared price. No evidence showed any flow back of money from the importer to the supplier. Mere doubt arising from higher contemporaneous imports, without evidence discrediting the invoice price, was insufficient to reject the transaction value. The price variation was also not of such magnitude as to undermine the genuineness of the declared value.

Conclusion: The rejection of the declared transaction value and the enhancement of assessable value were not justified and the issue was decided in favour of the assessee.

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