Declared transaction value must be accepted when supported by credible documents, and customs valuation rules apply sequentially before enhancement.

Declared transaction value supported by supplier certificate, price list, and surrounding contemporaneous documents could not be rejected merely on the basis of a recovered invoice showing a higher figure, especially where that invoice was contradicted by the supplier's clarification. In the absence of reliable contemporaneous imports or other valid evidence to displace the declared price, customs authorities were required to apply the valuation rules sequentially before enhancing assessable value. On that basis, enhancement of value was unjustified and the confiscation, duty demand, and penalty could not stand.

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Issues: Whether the declared value of the imported goods could be rejected and enhanced on the basis of a recovered invoice, and whether the Customs valuation provisions were required to be applied sequentially before adopting a higher value.

Analysis: The imported goods were a component of a ground power unit supplied under an identified work order, and the supplier's certificate and price list supported the declared value. The recovered invoice showing a higher price was not accepted as determinative because it was contradicted by the supplier's clarification and the surrounding documentary record. In the absence of reliable contemporaneous imports or other valid material to displace the declared price, the value could not be enhanced without resorting to the valuation rules in sequence.

Conclusion: The declared import value was required to be accepted and the enhancement of assessable value was unjustified.

Final Conclusion: The order confirming confiscation, duty, and penalty was unsustainable and was set aside, resulting in relief to the assessee.

Ratio Decidendi: Where the declared transaction value is supported by credible supplier documentation and there is no reliable contrary evidence, customs authorities must apply the valuation rules sequentially before rejecting or enhancing the import value.

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