law: Custom Act, 1962 
  14.
  
  Valuation of Goods for Purposes of Assessment. – 
  (1)
  
  For the purposes of the Customs Tariff Act, 1975 (51 of 1975), or any other law
  
  for the time being in force where under a duty of customs is chargeable on any
  
  goods by reference to their value, the value of such goods shall be deemed to
  
  be the price at which such or like goods are ordinarily sold, or offered for
  
  sale, for delivery at the time and place of importation or exportation, as the case
  
  may be, in the course of international trade, where the seller and the buyer
  
  have no interest in the business of each other and the price is the sole
  
  consideration for the sale or offer for sale :
  Provided
  
    that such price shall be calculated with
  
  reference to the rate of exchange as in force on the date on which a bill of
  
  entry is presented under section 46, or a shipping bill or bill of export, as
  
  the case may be, is presented under section 50;
  (1A)
  
  Subject to the provisions of sub-section (1), the price referred to in that
  
  sub-section in respect of imported goods shall be determined in accordance with
  
  the rules made in this behalf.
  (2)
  
  Notwithstanding anything contained in sub-section (1) or sub-section (1A), if
  
  the Central Government is satisfied that it is necessary or expedient so to do
  
  it may, by notification in the Official Gazette, fix tariff values for any
  
  class of imported goods or export goods, having regard to the trend of value of
  
  such or like goods, and where any such tariff values are fixed, the duty shall
  
  be chargeable with reference to such tariff value.
  (3)
  
  For the purposes of this section –
  (a) "rate of exchange" means the rate of exchange –
  ( i ) determined by the Central Government, or
  (ii) ascertained in such manner as the Central Government may direct,
  
  for the conversion of Indian currency into foreign currency or foreign currency
  
  into Indian currency;
  (b) "foreign currency" and "Indian currency" have
  
  the meanings respectively assigned to them in the Foreign Exchange Regulation
  
  Act, 1973 (46 of 1973).
  Comment  :. Undervaluation of goods  There was no allegation nor any
  
  evidence shown that the importers and foreign suppliers had any interest in the
  
  business of each other - Thus said invoice price could be treated as price at
  
  which the goods are ordinarily sold in course of international trade - Hence it
  
  could not be said that there was any undervaluation of goods.  Mirah  Exports Pvt . Ltd.
  
  v. Collector of Customs AIR 1998 SUPREME COURT 928