Customs valuation of imported cars must follow normal list-price practice; unexplained deviation led to remand for fresh assessment.

Customs valuation of an imported car must follow the normal practice of using the manufacturer's list price with permissible deductions; where the authorities depart from that norm without recorded justification, the assessment cannot stand. The impugned valuation, which included local taxes abroad without a proper basis, was set aside, and the assessable value, redemption fine and penalty were remanded to the original authority for fresh determination after giving the importer an opportunity to be heard.

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Issues: Whether the assessable value of the imported car and the consequential redemption fine and penalty required reconsideration on account of deviation from the normal valuation practice.

Analysis: The valuation adopted by the Customs authorities was not in accordance with the normal practice of valuing imported cars with reference to the manufacturer's list price after permissible deductions. No justifiable reason was recorded for adopting a higher value inclusive of local taxes abroad. In these circumstances, the matter required reconsideration by the original authority, with the appellant being given an opportunity to present the case afresh.

Conclusion: The assessable value was directed to be refixed according to the norm, and the impugned orders were set aside with a remand to the original authority for fresh decision.

Ratio Decidendi: Where the valuation of imported goods departs from the normal valuation norm without recorded justification, the assessment is liable to be set aside and remanded for fresh determination after hearing the importer.

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