DEPB benefit must follow declared FOB value, not estimated domestic market price, absent convincing contrary evidence.

DEPB entitlement on exported goods must be assessed on the declared FOB value where sale proceeds are received and the exporter's documents are not convincingly rebutted. Market enquiries suggesting a higher Indian domestic price do not justify substituting an estimated local value for the export value in the absence of reliable contrary proof. Section 14(1) and the departmental circular relied on by the department did not support restricting DEPB benefit on these facts, so the adjudication order was upheld and the restriction on DEPB benefit was not warranted.

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Issues: Whether DEPB benefit on export goods could be restricted on the basis of alleged overvaluation and Indian market value, despite the declared FOB value and receipt of sale proceeds.

Analysis: The declared FOB value governs grant of DEPB benefit. The mere opinion obtained from market enquiries about Indian market price does not furnish a legal basis to substitute the export FOB value, especially when there is no convincing evidence that the export realization was anything other than consideration for the exported goods. The existence of bank realization and the absence of stronger rebuttal to the exporter's documentary evidence supported acceptance of the declared value. Section 14(1) and the departmental circular relied upon by the adjudicating authority did not justify restricting DEPB on the basis of domestic market value in the facts of the case.

Conclusion: The restriction of DEPB benefit on the basis of alleged overvaluation was not warranted and the adjudication order was correctly left undisturbed.

Final Conclusion: The appeal failed because DEPB entitlement had to be assessed on the FOB value of the exports, not on an approximate Indian market valuation in the absence of contrary proof.

Ratio Decidendi: In the absence of convincing evidence to displace the declared export realization, DEPB benefit cannot be curtailed by substituting FOB value with estimated domestic market value.

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