Declared transaction value in customs valuation cannot be displaced without cogent material and legally sustainable reasons.

Declared transaction value could not be substituted in customs valuation merely on a mechanical basis where the first appellate authority had already examined the matter under the Customs Valuation (Determination of Price of Imported Goods) Rules, 2007 and recorded reasons. In the absence of documentary support or other cogent material to justify disturbing the declared value, the proposed reassessment was not sustainable. The Revenue's appeal was rejected, and the declared transaction value was left undisturbed.

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Issues: Whether the declared transaction value could be discarded and substituted in valuation when the first appellate authority had examined the matter under the Customs Valuation (Determination of Price of Imported Goods) Rules, 2007.

Analysis: The first appellate authority had considered the legal position and recorded reasons for its conclusion. The order reflected application of mind to the valuation issue under the Customs Valuation (Determination of Price of Imported Goods) Rules, 2007. In the absence of documentary support for disturbing the declared transaction value, the proposed mechanical substitution of value was not justified.

Conclusion: The declared transaction value was not liable to be disturbed, and the Revenue's appeal was rejected.

Ratio Decidendi: Declared transaction value cannot be displaced unless valuation is examined on legally sustainable grounds and supported by cogent material.

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