Imported goods valuation may be re-examined afresh where surrounding circumstances justify rejecting the declared transaction value.

Transaction value of imported goods may be rejected where the surrounding circumstances justify a different valuation, even if some suspicious features in import documents are not enough by themselves to displace the declared value. The Supreme Court noted that loading the price to the level of German-origin goods was unjustified on the material before it, but held that the valuation could still be examined afresh on proper evidence. The Tribunal was therefore directed to reconsider the appropriate value on a fresh evidentiary basis, with both sides entitled to place material before it.

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Issues: Whether the transaction value of the imported goods was liable to be rejected and the matter remanded for fresh determination of the appropriate value.

Analysis: The Tribunal had noticed suspicious features in the import documents, including the absence of particulars such as index number and strength, but treated those features as insufficient by themselves to reject the transaction value. The Court held that the loading of the price to the level of goods of German origin was unjustified, but that this did not preclude rejection of the transaction value if the circumstances warranted a different valuation. The proper course was for the Tribunal to examine the valuation afresh on the basis of evidence to be placed by both sides.

Conclusion: The transaction value issue was to be reconsidered afresh by the Tribunal, and the appeal was allowed with the order under appeal set aside.

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