Declared market value for DEPB credit upheld where departmental cost analysis did not justify rejection.

Present Market Value declared for DEPB credit was accepted where the AR-4 value matched the declared value and the departmental cost analysis had limited relevance. The Tribunal noted that Board circulars allow verification of market value to prevent misuse of the DEPB scheme, but they do not justify rejecting a declared value without compelling basis. Relying on applicable precedent, it held that a 20% difference from the departmental valuation was not excessive on these facts, so the declared value remained reasonable and the Revenue's challenge failed.

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Issues: Whether the Present Market Value declared by the exporter for DEPB credit could be disturbed on the basis of a departmental cost analysis and market enquiry, and whether the declared value was liable to be rejected.

Analysis: The dispute concerned determination of Present Market Value for goods exported under the DEPB Scheme. The Tribunal noted that Board circulars contemplated verification of market value to prevent misuse of the DEPB facility, but also recognised that where the AR-4 value and the declared Present Market Value are the same, the declared value is to be accepted. The departmental cost analysis was found to be of limited relevance, the Commissioner (Appeals) had rightly relied on the applicable Tribunal precedent, and the difference between the declared value and the departmental valuation was only 20%, which was not considered excessive.

Conclusion: The declared Present Market Value was accepted as reasonable, and the Revenue's challenge to the valuation failed.

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