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M/s Global Technologies and Research vs. Principal Commissioner of Customs, New Delhi (Import)

Not available · 2024 INSC 204Decided 15 Mar 2024
Not available
Justice Abhay S. Oka · Justice Pankaj Mithal · Justice Ujjal Bhuyan

Background

The appellant, a regular importer of camera stabilizer devices, imported a consignment in February 2018 at a declared value that customs intelligence officers suspected was understated. After examining the goods and comparing them with the appellant's own earlier imports of identical or similar items at higher prices, customs authorities seized the goods, rejected the declared transaction value, and imposed a higher assessable value along with penalties, a view the customs appellate tribunal (CESTAT) upheld.

Decision Breakdown

The Supreme Court upheld CESTAT's factual finding that the imported goods were identical or similar to goods the same importer had brought in earlier at higher declared prices, noting that the customs authorities had given detailed, reasoned grounds for rejecting the declared value as required by law. Since the only real difference the appellant pointed to was a vague label change ("unpopular brand"), and cogent reasons supported the department's own valuation, the Court found no error in the enhanced valuation or the penalties imposed, and dismissed the appeal.

Lesson Learnt

Customs authorities can lawfully reject an importer's self-declared invoice price when they can show, with proper reasoning, that identical or similar goods were valued higher in the importer's own recent transactions: a low invoice price alone is not conclusive proof of genuine value.

Official source (sci.gov.in)View Judgment (PDF)

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