Customs valuation by comparable imports sustains rejection of declared value and confiscation for licence mismatch.

Declared transaction value for imported goods may be rejected where contemporaneous import data, supplier correspondence and statements show that the invoice price does not reflect the normal price between independent buyer and seller. In such circumstances, assessable value may be fixed on the basis of comparable imports, particularly where the evidence shows price variation in the supplier's exports and a special commercial understanding for the consignment. Where the enhanced value is not covered by the relevant licence, confiscation may follow under Customs law, and redemption fine may be sustained if proportionate to the duty involved.

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Issues: Whether the imported hop extract was undervalued and whether the Commissioner was justified in rejecting the declared transaction value, fixing assessable value on the basis of comparable imports, and ordering confiscation with redemption fine.

Analysis: The declared invoice price was tested against contemporaneous import data, correspondence from the supplier and agents, and statements of the importers and their officials. The material showed wide price variation in the same supplier's exports, higher prices charged to other importers, and a special commercial understanding for the impugned consignment. On that basis, the declared price was found not to represent the normal price for an independent buyer and the transaction value was rejected. The Commissioner then adopted a lower representative value from comparable imports and, since the licence did not cover the enhanced value of the consignment, ordered confiscation under the Customs law. The redemption fine was also found to be proportionate to the duty involved.

Conclusion: The rejection of the declared value and the fixation of assessable value on comparable import prices were upheld, and the confiscation with redemption fine was sustained against the assessee.

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