In Brief
M/s Ganpati Overseas imported tuners from Hong Kong. The customs department alleged under-valuation of goods to evade duty, relying on export declarations and confessions obtained under duress. The CESTAT set aside the enhancement, noting that photocopies of export declarations lacked evidentiary value and the supplier later filed corrected declarations. The Supreme Court upheld CESTAT's decision, holding that the department must prove under-valuation through credible evidence of contemporaneous imports at higher prices. Mere reliance on unattested photocopies and retracted statements obtained under coercion cannot justify rejecting the declared invoice price or invoking Rule 8 of the Customs Valuation Rules without following the prescribed sequential procedure.
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