Transaction value for imported goods cannot be rejected without comparable evidence and fair disclosure of relied-upon materials.

Declared transaction value of imported betel nuts cannot be rejected merely because contemporaneous imports through other ports show higher prices, unless the Department proves that the goods are comparable in quality, quantity, grade and commercial level and identifies a valid basis for doubt. Here, the importers had bank records supporting payment of the declared value, and there was no evidence of extra consideration. Non-supply of the relied-upon invoices also violated natural justice. The enhanced valuation was therefore unsustainable and the declared value was restored.

---

---

Issues: Whether the declared transaction value of imported betel nuts could be rejected and enhanced on the basis of contemporaneous imports through other ports, and whether the importers were denied a fair opportunity when the relied-upon invoices were not supplied.

Analysis: The enhancement was based merely on data of imports through other ports, without establishing that the goods were comparable in quality, quantity, grade, or commercial level. The quantities imported through other ports were far smaller than the appellants' contracted imports, and the importers had produced bank documents showing payment of the transaction value. There was no evidence of extra consideration or of any reason to doubt the invoices. The absence of copies of the relied-upon invoices also amounted to denial of natural justice. In these circumstances, the declared transaction value could not be rejected under the valuation rules.

Conclusion: The rejection of transaction value was unsustainable and the enhanced valuation could not be upheld.

Final Conclusion: The appeals by the importers succeeded and the Revenue appeals failed, with the declared value restored.

Ratio Decidendi: Transaction value cannot be rejected on the basis of contemporaneous imports unless the Department establishes comparable goods and follows fair procedure, including disclosure of the material relied upon.

---