Customs valuation under DEEC scheme permits verification of export value and over-invoicing scrutiny even without export duty.

Under the DEEC scheme, customs authorities may verify and certify the correctness of export value, including FOB value, even where no export duty is leviable. Section 14(1) of the Customs Act, 1962 is the statutory basis for determining value whenever that value is relevant under customs law or allied regulatory instruments. The customs power is not confined to duty assessment, and exporters' declarations are not conclusive where over-invoicing is suspected. Incorrect valuation may also trigger confiscation and penalty consequences under the governing statutory and regulatory framework.

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Issues: Whether, under the DEEC scheme, the customs authorities could verify and certify the correctness of the export value even where no export duty was leviable, and whether Section 14(1) of the Customs Act, 1962 furnished the proper method for such determination.

Analysis: The DEEC scheme required the customs officer's authentication of the export particulars, including FOB value, and the scheme's object was to grant import-duty benefits only on the basis of correctly certified export value. The customs power was not confined to assessment of duty; Section 14(1) of the Customs Act, 1962 was the statutory method for determining value whenever that value was relevant under the Act, notifications, export control orders, foreign trade rules, or allied regulatory provisions. The Court held that the customs authorities were entitled to inquire into suspected over-invoicing and were not bound to accept the exporter's declaration as conclusive. The statutory and regulatory framework supported the conclusion that incorrect valuation could attract confiscation and penalty consequences.

Conclusion: The customs authorities had jurisdiction to determine the correct export value under the DEEC scheme, and such determination was not limited to cases where customs duty was assessable.

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