Customs valuation must follow governing rules, and refund claims are not barred merely because no assessment objection was raised.

Customs valuation remained governed by the Customs Act and Customs Valuation Rules, 1963, even though the import licence was conditional and a High Court order directed issuance of the licence. The assessable value had to be determined on the ordinary price of like goods and the true price actually paid, not merely by reference to the court order. A refund claim under Section 27 was not defeated solely because no objection had been raised at the time of assessment, and the view that Section 14 was inapplicable was incorrect. The matter was remitted for fresh consideration of the refund claims in accordance with law.

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Issues: (i) Whether the assessable value of the imported goods had to be determined under the Customs law notwithstanding the licence condition and the High Court's direction to issue a licence; (ii) Whether the failure to object at the time of assessment barred the refund claim under the Customs Act.

Issue (i): Whether the assessable value of the imported goods had to be determined under the Customs law notwithstanding the licence condition and the High Court's direction to issue a licence.

Analysis: The licence was conditional, but the High Court's direction related only to issuance of the licence and had no bearing on valuation. If the contracted price was actually paid, the import would be valid subject to the licence condition, but valuation would still have to be governed by the Customs Valuation Rules, 1963 and Section 14 of the Customs Act, 1962, both of which turn on the ordinary price of like goods. The lower authority ought to have investigated the true price paid and the availability of comparable import prices.

Conclusion: The assessable value was not to be fixed merely by reference to the High Court order, and the Customs law remained applicable.

Issue (ii): Whether the failure to object at the time of assessment barred the refund claim under the Customs Act.

Analysis: A refund claim is governed by Section 27 of the Customs Act, 1962. The absence of objection at the time of assessment did not by itself defeat the refund claim, and the view that Section 14 was inoperative in the case was incorrect in law.

Conclusion: The refund claim was not barred on the ground that no objection had been raised at assessment.

Final Conclusion: The impugned order was set aside and the matter was remitted for fresh consideration of the refund claims in accordance with law.

Ratio Decidendi: For customs valuation and refund, the assessable value must be determined under the governing valuation law on the basis of the ordinary price of like goods, and a refund claim under Section 27 is not defeated merely because no objection was raised at assessment.

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