Customs valuation: declared transaction value cannot be rejected on unverified contemporaneous imports lacking reliable comparability.

Declared transaction value in customs valuation cannot be rejected on the basis of alleged contemporaneous imports unless the statutory conditions for rejection are satisfied and the relied-upon imports are shown to be genuine, reliable comparables. Here, the comparison failed because differences existed in description, grade, country of origin, quantity, and place of exportation or importation, and the import data was not put to the importer for rebuttal. The reasoning in the original order also showed uncertainty about the applicability of the comparison under the valuation rules. On that basis, rejection of the declared value and re-determination of the import value were held unsustainable and set aside in favour of the assessee.

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Issues: Whether the authorities were justified in rejecting the declared transaction value and re-determining the import value on the basis of alleged contemporaneous imports.

Analysis: The declared value could not be rejected without a proper examination of the statutory valuation scheme. The record showed that the alleged contemporaneous imports were not effectively established as reliable comparables, especially in view of differences in description, grade, country of origin, quantity and place of exportation or importation. The basis for comparison was also weakened because the relied-upon import data had not been put to the importer for rebuttal, and the reasoning in the original order itself reflected uncertainty as to the applicability of the comparison under the valuation rules. In such circumstances, the re-determination lacked a legally sustainable foundation.

Conclusion: The rejection of the declared value and the consequent re-determination of import value were not justified and are set aside in favour of the assessee.

Ratio Decidendi: Declared transaction value cannot be discarded on the basis of alleged contemporaneous imports unless the statutory conditions for rejection are satisfied and the comparable imports are shown to be genuine and reliable comparables.

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