Valuation of imported goods - undervaluation of aluminium and...

Valuation of imported goods - undervaluation of aluminium and zinc scrap of various grades imported from overseas suppliers. Redetermination of value based on import price being lower than prevailing London Metal Exchange (LME) prices. Held: Valuation u/s 14 mandates value as price at which goods ordinarily sold or offered for sale at time and place of importation in international trade, considering deemed value where seller and buyer have no business interest and price is sole consideration. Appellant entered contracts with overseas suppliers, goods supplied under commercial invoices. No evidence of additional payment or business interest between parties. LME prices cannot be sole evidence to substantiate undervaluation charge when contemporaneous imports at similar prices available. Transaction value cannot be rejected without contemporaneous evidence. Demands and penalties unsustainable, impugned order set aside, appeal allowed.