DTA valuation for 100% EOU clearances follows domestic transaction value, not FOB export value, absent contrary evidence.

For DTA clearances by a 100% EOU, assessable value is determined by the domestic transaction value under the valuation rules, not by the FOB export value of the same goods. The analysis notes that the earlier departmental circular supporting export-price-based valuation had been displaced by later Tribunal decisions and withdrawn by the Board, while the applicable circular allowed acceptance of transaction value if it satisfied the valuation rule. In the absence of evidence that the declared domestic sale price was below contemporaneous import prices of similar goods, the demand, interest, and penalty were not sustainable.

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Issues: Whether the assessable value for DTA clearances made by a 100% Export Oriented Unit was to be taken as the domestic transaction value or the FOB export value of the same goods.

Analysis: The valuation dispute turned on whether DTA sales by a 100% EOU could be equated with export sales for the purpose of fixing assessable value. The Tribunal noted that earlier departmental reliance on a circular prescribing export price-based valuation had already been displaced by subsequent Tribunal decisions, and that the Board had withdrawn the earlier circular. It further noted that the applicable circular permitted acceptance of transaction value for DTA sales if it conformed to the valuation rule, and that the Department had adduced no evidence showing that the declared domestic sale price was below contemporaneous import prices of similar goods.

Conclusion: The assessable value for the DTA clearances was the transaction value, not the FOB export value, and the demand, interest, and penalty could not be sustained.

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