Binding export valuation circulars control rebate clearances; later inapplicable circulars cannot sustain a demand.

For export goods cleared under claim for rebate, the applicable Board circular for the relevant period permitted acceptance of F.O.B. value as the assessable value, and that circular was binding on the adjudicating authority. A demand based on a later circular could not be sustained where it was not applicable to the period in dispute. The document therefore states that F.O.B. value was correctly applied for the export consignments and the demand was unsustainable, with the impugned order set aside and consequential relief following.

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Issues: Whether, for goods cleared for export under claim for rebate, F.O.B. value could be accepted as the assessable value and whether a demand based on a later circular could be sustained.

Analysis: The export clearances were made during the period when the Board's circular dated 10-04-1986 expressly permitted acceptance of F.O.B. value as the assessable value for goods meant for export under claim for rebate. That circular applied to the relevant period and was binding on the authorities deciding the matter. The adjudication, however, proceeded on the basis of a subsequent circular dated 03-02-2000, which was not relevant to the period in dispute. In the circumstances, the demand founded on the later circular could not be upheld.

Conclusion: The F.O.B. value was correctly applicable for the export consignments and the demand was unsustainable.

Final Conclusion: The impugned order was set aside and the appeal succeeded with consequential relief.

Ratio Decidendi: A circular governing export valuation for the relevant period is binding on the adjudicating authority, and a demand cannot be sustained by relying on a later, inapplicable circular.

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