Customs import valuation dispute over under-declared transaction values; Rule 5 similar-goods valuation upheld, fines and penalties overturned.

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....Where the declared import values were substantially lower than contemporaneous values, the proper officer had reasonable doubt about the truth and accuracy of the transaction value, and rejection of the declared value was justified; the importer's online acceptance of such rejection was treated as voluntary, not coerced. Upon rejection, valuation was required to proceed under the Customs Valuation Rules by applying Rule 4 (identical goods) failing which Rule 5 (similar goods), and the re-determination based on similar goods under Rule 5 was upheld. However, since the importer had correctly declared the transaction value in the Bill of Entry and could not anticipate re-determination, confiscation under Section 111(m) was unwarranted; consequently, redemption fine and penalty under Section 112 were set aside. - CESTAT....