Import valuation cannot be enhanced using material outside the show-cause notice; declared value upheld on proper contemporaneous comparison.

Declared import value cannot be rejected and enhanced on the basis of contemporaneous import data that was not included in the show-cause notice, because the Revenue may not travel beyond the notice's scope. The importer's declared assessable value was supported by the purchase order, letter of credit, and other contemporaneous documents, and prior imports of identical goods from the same supplier at the same value had been accepted by the same Customs House. The enhancement also failed because the contemporaneous reference was incorrectly compared in euro rather than US dollar terms, which distorted valuation. The order accepting the declared assessable value was therefore upheld.

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Issues: Whether the declared assessable value of the imported goods could be rejected and enhanced on the basis of contemporaneous import data not forming part of the show-cause notice, and whether the Commissioner (Appeals) was justified in accepting the declared value.

Analysis: The declared value was supported by purchase order, letter of credit and other contemporaneous documents, and the importer had shown prior imports of identical goods from the same supplier at the same value that had been accepted by the same Customs House. The departmental attempt to rely on fresh contemporaneous import data at a higher value could not be accepted because the material was available when the notice was issued and the Revenue could not travel beyond the scope of the show-cause notice. The original enhancement was also found to rest on an incorrect valuation premise, since the contemporaneous import reference was in euro and not US dollar terms, which materially affected the comparison.

Conclusion: The rejection of the declared value was not sustained, and the order accepting the declared assessable value was upheld.

Final Conclusion: The appeal failed, and the declared import value remained accepted.

Ratio Decidendi: Valuation of imported goods cannot be enhanced on the basis of material outside the show-cause notice, and contemporaneous import evidence must be correctly identified and compared before rejecting the declared value.

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