Transaction value in customs valuation cannot be rejected without evidence of extra consideration or an incorrect declared price.

Declared transaction value for imported old and used photocopier machines must be accepted under Rule 3 of the Customs Valuation Rules, 2007 unless the Revenue establishes a legally sustainable ground to reject it. In the absence of evidence of extra consideration, flow back of money, or any circumstance showing that the invoice price was influenced or incorrect, the assessable value cannot be enhanced merely on the basis of a Chartered Engineer's report. The declared value remained supported by the import documents, and enhancement without first displacing the transaction value on proper grounds was unsustainable.

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Issues: Whether the declared transaction value of the imported old and used photocopier machines could be rejected and enhanced on the basis of a Chartered Engineer's report in the absence of evidence of extra consideration or any circumstance showing that the declared price was incorrect.

Analysis: Rule 3 of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 requires acceptance of the transaction value as the assessable value unless the prescribed exceptions are established. The record did not show any allegation or proof of additional payment, flow back of money, or any other circumstance indicating that the invoice value was influenced or incorrect. The declared value was supported by the import documents and the Revenue had not first rejected the transaction value on legally sustainable grounds. In such circumstances, enhancement based only on a second Chartered Engineer's report could not displace the declared transaction value.

Conclusion: The declared transaction value had to be accepted as the correct assessable value and the enhancement was unsustainable.

Ratio Decidendi: Declared transaction value under Rule 3 of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 cannot be rejected unless cogent evidence shows that the price was influenced by a disqualifying circumstance or was otherwise incorrect.

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