Transaction value of imported furniture cannot be enhanced on a pro rata weight basis when valuation is per unit and price is undisputed.

Imported wooden furniture assessed on a per-piece basis could not have its declared transaction value enhanced pro rata merely because excess weight was found on physical verification. The declared assessable value was supported by proforma invoices, and the Revenue did not dispute the transaction value or show that duty was chargeable by weight. On that footing, loading the invoice price on a proportional weight basis had no legal foundation. The resulting demand, confiscation and penalty based on such enhancement were unsustainable, and the impugned order was set aside with consequential relief.

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Issues: Whether the declared transaction value of imported wooden furniture could be loaded on a pro rata basis merely because excess weight was found on physical verification, when the goods were classified and assessable by unit and not by weight.

Analysis: The imported goods were wooden furniture classified under Chapter 94038990 and were assessable on a per-piece basis. The declared assessable value was based on the proforma invoices and the Revenue did not dispute that transaction value. Mere discrepancy between the declared weight and the weight found on examination did not alter the basis of valuation where duty was not chargeable on weight. In such circumstances, loading the invoice price on a proportional weight basis had no legal foundation.

Conclusion: The pro rata enhancement of value was not justified and the demand, confiscation and penalty based on such loading could not stand.

Final Conclusion: The appeal succeeded and the impugned order was set aside with consequential relief.

Ratio Decidendi: Where imported goods are assessable on a unit basis and the declared transaction value is not otherwise disputed, excess weight noticed at physical verification cannot by itself justify pro rata loading of value.

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