Valuation (Customs) — Misdeclaration of price and quantity — Whether invoice declaring goods as acrylic waste but containing a sizeable portion of acrylic fibre would represent transaction value ? (2) Valuation (Customs) — Contemporaneous import — Whether enhancement of value can be upheld, where lowest price in invoices of goods same as impugned one and of same origin adopted for valuation ?

The Supreme Court Bench comprising Hon’ble Mr. Justice Syed Shah Mohammed Quadri and Hon’ble Mr. Justice S.N. Variava on 11-1-2002 admitted the Civil Appeal No. 8654 of 2001 filed by Schokhi Industrial Pvt. Ltd. against CEGAT Order No. 2156/2001-WZB/C-II, dated 17-8-2001 and reported in 2002 (146) E.L.T. 462 (Tri. - Mumbai) (Schokhi Industrial Pvt. Ltd. v. Commissioner).

The Appellate Tribunal in its impugned order had held that where invoice declaring goods as acrylic thread waste found to contain acrylic fibre in 30% of total quantity, invoice could not represent transaction value and argument that in absence of any exception to Rule 4 of Customs Valuation (Determination of Price of Imported Goods) Rules, 1988, same should be accepted rejected.

The Tribunal further held that in case of valuation for contemporaneous imports, lowest price in invoices of goods same as impugned one and of same country of origin adopted for valuation, enhancement of value upheld.

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