The Supreme Court declared that the transaction value mentioned in the bill of entry should not be discarded unless there are contrary details of contemporaneous imports or other material justifying the rejection. The court stated so in its judgment in Century Metal Recycling Ltd vs Union of India.

The company is engaged in the manufacture of aluminium alloys, for which it regularly imports aluminium waste as a raw material for self-consumption. Its grievance is that the principal commissioner of customs, Noida, always refused to clear consignments according to the declared transaction value in the bill of entry.

The officers insist that the firm write a letter agreeing to pay customs duty as per their valuation. Thus the firm is compelled to forego its right to provisional assessment under the Customs Act. The court allowed the appeal stating that the order of the customs authorities was flawed and contrary to law for it did not give a good reason for rejection of the transaction value as declared in the bill of entry.