Declared export value cannot be rejected for DEPB purposes merely because it differs from PMV without contemporaneous contrary evidence.

Declared FOB value for exported cotton knitted T-shirts could not be rejected for DEPB purposes merely because it differed from PMV. Contemporaneous export data showed comparable exports at similar per-piece values, and the same value had also been accepted in the exporter's own shipments. Market verification under the standing order required opinion, intelligence, or prima facie evidence, but no such material was recorded beyond the FOB-PMV difference. The contrary appellate order, having ignored the contemporaneous evidence and the adjudicating findings, was therefore unsustainable, and the declared export value was accepted.

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Issues: Whether the declared FOB value of the exported cotton knitted T-shirts could be rejected for DEPB purposes merely because of a difference between FOB and PMV, and whether the departmental market verification and the first appellate order were sustainable.

Analysis: The declared goods were found to be cotton knitted round-neck T-shirts of good quality, and the quantity exported was not disputed. The contemporaneous export data showed comparable exports at about Rs. 310 to Rs. 315 per piece during the relevant period, and similar value had also been accepted in the appellant's own exports. The direction in the standing order required market verification to be undertaken only on the basis of opinion, intelligence, or prima facie evidence, but no such material was recorded apart from the difference between FOB and PMV. The rejection of the declared value, without dealing with the contemporaneous export evidence and the adjudicating authority's findings, was therefore unsustainable.

Conclusion: The declared FOB value was correctly accepted, and the contrary appellate order was not sustainable.

Final Conclusion: The appeal succeeded and the order rejecting the declared export value was set aside.

Ratio Decidendi: Declared export value cannot be rejected for DEPB purposes merely on the basis of a disparity with PMV unless supported by contemporaneous contrary evidence or prima facie material justifying market verification.

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