Customs valuation requires truly comparable imports; a mismatched proforma invoice could not justify rejection of declared value.

Customs valuation cannot be upheld on the basis of a proforma invoice for goods that are materially different from the declared imports. The declared documents showed Singapore origin, a Singapore supplier, shipment from Singapore and pricing in Singapore dollars, while the relied-upon invoice related to Japanese-origin goods from a different supplier, shipped from Japan, priced in yen and issued four months later. Similarity of brand name alone was insufficient to establish comparability or common manufacture. On that basis, rejection of the declared value and the consequential duty demand were held unsustainable, and the valuation and demand orders were set aside in favour of the assessee.

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Issues: Whether the customs authorities were justified in rejecting the declared import value and confirming differential duty by relying on a proforma invoice relating to goods of different origin, supplier, shipment place, and time.

Analysis: The declared import documents showed Singapore origin, Singapore supplier, and a Singapore-dollar invoice price, while the relied-upon proforma invoice concerned Japanese-origin goods from a different supplier, with shipment from Japan, priced in Japanese yen and issued four months later. The similarity of the brand name alone did not establish that the goods were comparable or that the manufacturer was the same. In these circumstances, reliance on that invoice for valuing the appellant's goods was held to be improper.

Conclusion: The rejection of the declared value and the consequential demand could not be sustained; the issue was decided in favour of the assessee.

Final Conclusion: The impugned valuation and demand orders were set aside, and the appeal succeeded.

Ratio Decidendi: A valuation based on comparable imports cannot rest on a proforma invoice of goods that are materially different in origin, supplier, shipment source, currency, and time of transaction.

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