STATE BANK OF INDIA vs COLLECTOR OF CUSTOMS, BOMBAY

The Supreme Court ruled on the applicability of Section 27 of the Customs Act, 1962, affirming that the State Bank of India was entitled to a refund of customs duty paid on the excess amount levied due to misinterpretation of the valuation rules. The Court held that the customs duty should only be levied on the actual cost of the software and manuals, amounting to US$ 401,047, rather than the total amount declared in the Bill of Entry. The judgment emphasized the importance of adhering to the Customs Valuation (Determination of Price of Imported Goods) Rules, 1988, particularly Rules 2, 3, 4, and 9(1)(c).