Declared import value cannot be rejected on NIDB data alone without reliable contemporaneous evidence or a supported market enquiry.

Declared transaction value of imported PU belts cannot be rejected merely on NIDB data, a departmental circular, or an unsupported market survey. The Tribunal found no reliable contemporaneous imports of identical or similar goods at a higher price and no properly supported market enquiry disclosed to the importer, so the invoice value remained acceptable under the valuation framework. Following its earlier decisions on the same product and period, it held that enhancement of value was not sustainable. The consequential reassessment, demand, and penalty also could not stand on the material placed by the department.

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Issues: Whether the declared value of imported PU belts could be rejected and enhanced on the basis of NIDB data, a departmental circular and market survey, leading to reassessment and penalty.

Analysis: The declared transaction value can be disturbed only on cogent evidence showing that it is unacceptable under the valuation framework. The record did not disclose reliable contemporaneous imports of identical or similar goods at a higher price, nor a properly supported market enquiry with material made available to the importer. NIDB data and the departmental circular, by themselves, were treated as insufficient to displace the invoice value. The Tribunal followed its earlier decisions on the same product and the same time period, and held that enhancement on the material relied upon by the department was not sustainable.

Conclusion: The rejection of the declared value and its enhancement were not justified, and the appeal succeeded.

Final Conclusion: The assessment based on enhanced value, along with the consequential demand and penalty, could not be sustained on the material placed by the department.

Ratio Decidendi: In the absence of reliable evidence of contemporaneous imports or a duly supported market enquiry, the declared import value cannot be rejected merely on the basis of NIDB data or a departmental circular.

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