Declared import value cannot be re-determined under Rule 5 unless first rejected under Rule 12 with sufficient evidence.

Declared assessable value of imported goods cannot be re-determined under Rule 5 of the Customs Valuation Rules, 2007 unless that declared value is first rejected under Rule 12 on legally sufficient evidence. CESTAT New Delhi noted that the Department had not invoked Rule 12 and had not produced evidence sufficient to displace the declared value; NIDB data and the DGOV circular could not replace the statutory requirement for rejection of value. Re-determination on that basis was therefore unsustainable, and the declared value was required to be accepted for assessment.

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Issues: Whether the declared assessable value of the imported goods could be re-determined under Rule 5 of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 without first rejecting that value under Rule 12 of the said Rules.

Analysis: The Department had not invoked Rule 12 to reject the declared value. In the absence of such rejection, the declared value could not be re-determined by resorting to Rule 5. The Department also failed to produce any other evidence sufficient to displace the declared value, and reliance on NIDB data or the DGOV circular could not substitute the statutory requirement for rejection of value.

Conclusion: The re-determination of value was unsustainable and the declared value was required to be accepted for assessment.

Ratio Decidendi: Re-determination of the imported goods' value under Rule 5 is impermissible unless the declared value is first rejected in accordance with Rule 12 on the basis of legally sufficient evidence.

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