Import valuation of copper dross must follow valuation rules; declared value may be rejected, but ingot-based valuation is impermissible.

Declared transaction value of imported copper dross could be rejected where test results showed copper content far above the declared percentage. However, copper dross and copper ingots are distinct commodities, so valuation could not be fixed by simply treating the dross as higher-purity ingots. The proper sequence under the valuation rules had to be applied, and in the absence of contemporaneous imports of identical or similar goods, final valuation could not be conclusively determined on the available material. Rejection of the declared value was upheld, but the adopted valuation method was rejected and the value had to be redetermined afresh under the rules.

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Issues: Whether the declared value of imported copper dross could be rejected and whether valuation could be fixed by treating the goods as copper ingots, or whether the value had to be redetermined in accordance with the valuation rules.

Analysis: The declared transaction value was not acceptable because the test results showed a copper content far above the percentage declared. However, copper dross and copper ingots are different commodities, and the value of one could not be adopted merely by treating the dross as if it were ingots of higher purity. The valuation required consideration of the proper sequence of the valuation rules, and the absence of contemporaneous imports of identical or similar goods meant that the matter could not be conclusively fixed on the material available.

Conclusion: The rejection of the declared value was upheld, but the method of valuation adopted below was not sustained. The value was required to be determined afresh in accordance with the valuation rules, in favour of the assessee on the question of final valuation.

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