Import valuation based on unreliable comparables rejected, with assessable value fixed lower and redemption fine reduced.

The valuation of an imported machine was not accepted on the basis of the importer's invoice and cash memo because they did not establish that the goods were identical or truly comparable to the alleged earlier purchase, and the claimed pre-1987 manufacture was not convincingly shown. The alleged United Kingdom comparable price was also rejected as an unreliable valuation basis. The assessable value was therefore fixed at Hong Kong $15,600 FOB, duty was directed to be reassessed on that basis, and the redemption fine was reduced to Rs. 10,000.

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Issues: Whether the assessable value of the imported machine should be fixed on the basis of the alleged comparable United Kingdom price or on the basis of the invoice and cash memo produced by the importer, and what consequential relief should follow regarding duty and redemption fine.

Analysis: The invoice and cash memo produced by the importer did not contain sufficient particulars to establish that the machine said to have been imported in the United Kingdom was identical or truly comparable to the imported goods. The basis adopted for comparison was therefore not reliable. At the same time, the importer did not satisfactorily explain the substantial difference between the later invoice value and the earlier purchase price, and no convincing case was made that the machine was manufactured before 1987. In these circumstances, the invoice value was not accepted, but the United Kingdom price was also rejected as the basis for valuation.

Conclusion: The assessable value was fixed at Hong Kong $ 15,600 FOB, duty was directed to be reassessed on that basis, and the redemption fine was reduced to Rs. 10,000.

Final Conclusion: The valuation adopted in the lower order was modified, resulting in a reduced assessable value and a substantial reduction in redemption fine, while the confiscatory consequence was not set aside.

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