Dominant issue 1: Whether transaction value must be fixed by...

Dominant issue 1: Whether transaction value must be fixed by contemporaneous imports under Valuation Rule 4 when declared goods differ in specification. Reasoning: Proper officer reasonably doubted declared value because invoices stated 0.62 mm thickness while actual fabric measured 0.74-0.81 mm (19-30% higher); contemporaneous identical imports showed U.S.$1.80 and $1.85 per metre, so Rule 4 mandates the lower contemporaneous transaction value. Outcome: Assessable value, differential duty and penalty under s.114A are re-determined using U.S.$1.80/m. Dominant issue 2: Whether mis-declaration and confiscation, redemption fine and director penalty justified. Reasoning: Import was mis-declared (s.111(m)); redemption fine was modest and director penalty under s.112(a) was appropriate. Outcome: Confiscation, redemption fine and director penalty upheld. - CESTAT