Undisclosed market inquiry evidence cannot support value enhancement, confiscation, or penalty without giving the importer an opportunity to respond.

Enhancement of assessable value based on undisclosed market inquiry material was found unsustainable on the existing record, because the importer had not been supplied the survey basis and mala fide intent was not established. On that footing, confiscation, redemption fine, and penalty could not be upheld, and the adjudication had to be reconsidered after disclosure of the valuation material. The impugned orders were set aside and the matter was remanded for de novo decision after giving the importer an opportunity to meet the market survey evidence.

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Issues: Whether the enhancement of assessable value, confiscation of the goods, imposition of redemption fine and penalty, and the consequent adjudication required interference and remand.

Analysis: The goods were found different from the declaration in the bills of entry, but the importer had relied on the supplier's invoice and packing list, and the record did not establish the requisite mala fide intent to deny the benefit of doubt. On valuation, the enhancement was based on market inquiry, yet the market survey material was not furnished to the importer. Since the basis of valuation had not been supplied, the matter required reconsideration in fairness. In these circumstances, confiscation and penalty could not be sustained on the existing record, and the adjudication had to be reopened after providing the market survey material.

Conclusion: The impugned orders were set aside and the matter was remanded to the adjudicating authority for fresh decision after supplying the market survey to the importer; confiscation and penalty were not sustained on the existing findings.

Final Conclusion: The dispute was sent back for de novo adjudication, with the importer given an opportunity to meet the valuation basis, and the prior adverse consequences were not allowed to stand.

Ratio Decidendi: Where enhancement of imported goods' value rests on market inquiry material not disclosed to the importer, and mala fide intent is not established, the matter must be reconsidered after supplying the underlying material, and consequential confiscation and penalty cannot be sustained on the existing record.

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