Declared transaction value and detention-based demurrage relief govern customs assessment and cargo-handling liability.

Declared transaction value under customs valuation cannot be rejected unless Revenue produces credible evidence of undervaluation and follows the prescribed rejection procedure; in the absence of independent proof such as comparable imports or additional consideration, the invoice value must be accepted for assessment. Where imported goods remain under detention by the proper officer during investigation, the cargo-handling regulations exempt the importer from rent and demurrage for that period. On these principles, the declared value was directed to be adopted and the ancillary demurrage relief followed.

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Issues: (i) Whether the declared transaction value of the imported goods could be rejected and the assessable value enhanced on the basis of the material relied upon by Revenue. (ii) Whether the importers were entitled to exemption from rent and demurrage for the period the goods remained under detention for investigation.

Issue (i): Whether the declared transaction value of the imported goods could be rejected and the assessable value enhanced on the basis of the material relied upon by Revenue.

Analysis: The assessment of imported goods must ordinarily proceed on the basis of the price actually paid or payable, and rejection of declared value requires reliable evidence and compliance with the prescribed valuation procedure. The material relied upon by Revenue was found not to have established the authenticity or evidentiary worth necessary to support undervaluation. The order also did not disclose any clear basis for the branding allegation or any independent evidence of additional consideration, comparable imports, or other material sufficient to discard the invoice value.

Conclusion: The declared transaction value could not be rejected, undervaluation was not established, and the invoice value was required to be accepted for assessment.

Issue (ii): Whether the importers were entitled to exemption from rent and demurrage for the period the goods remained under detention for investigation.

Analysis: Where goods remain under detention by the proper officer for investigation, the cargo-handling regulations exempt the importer from rent and demurrage liability for the relevant period. The detention of the goods during investigation brought the case within that regulatory protection.

Conclusion: The importers were entitled to exemption from rent and demurrage.

Final Conclusion: The impugned orders were set aside, the appeals were allowed, the declared value was directed to be adopted for assessment, and the ancillary relief regarding rent and demurrage also followed.

Ratio Decidendi: Declared transaction value under customs valuation cannot be discarded unless Revenue establishes undervaluation with credible material and follows the prescribed rejection procedure; in the absence of such proof, the invoice value must be accepted, and detention of cargo for investigation attracts the regulatory exemption from rent and demurrage.

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