Export valuation must reflect market variation; declared value cannot be rejected on costing alone in nail polish bottle trade.

Declared export value for nail polish bottles could not be rejected merely on the basis of costing and a lower estimated market value, because such goods may show wide price variation depending on commercial considerations in the international market. Costing alone was not a sufficient or exclusive basis for fixing export value, and the declared value was accepted as properly stated. The customs authorities' substitution of value was therefore disallowed, and the matter was decided in favour of the assessee.

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Issues: Whether the declared export value of Nail Polish Bottles could be rejected and substituted on the basis of costing and a lower estimated market value.

Analysis: The Tribunal held that in an item like nail polish there may be wide price variation depending on relevant commercial considerations. It further held that costing alone could not be the sole basis for determining export value in the international market, and accepted the appellants' case that the declared value was properly stated.

Conclusion: The declared export value could not be rejected on the basis adopted by the customs authorities, and the issue was decided in favour of the assessee.

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