Declared export value must be tested through disclosed grounds, hearing, and valuation rules before rejection or enhancement.

Declared export value under Section 14 of the Customs Act, 1962 can be rejected only by following the prescribed valuation procedure. Where the proper officer doubts the declared value, Rule 8 of the Customs Valuation (Determination of Value of Export Goods) Rules, 2007 requires disclosure of the grounds for doubt, seeking further information, and affording a reasonable opportunity of hearing before finalising assessment. Because the relied-upon material was not furnished and the basis for rejecting the transaction value was not disclosed, enhancement on undisclosed contemporaneous data was unsustainable. The assessment was set aside and the matter remanded for fresh decision in accordance with law and natural justice.

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Issues: Whether the rejection of the declared export value and finalisation of assessment were sustainable when the relied-upon material was not disclosed and the procedure under the valuation rules was not followed.

Analysis: The declared value of export goods is the transaction value under Section 14 of the Customs Act, 1962, and it can be rejected only in accordance with the prescribed procedure. Rule 8(1) and Rule 8(2) of the Customs Valuation (Determination of Value of Export Goods) Rules, 2007 require the proper officer, when doubting the declared value, to seek further information, intimate the grounds for doubt in writing, and afford a reasonable opportunity of hearing before taking a final decision. The relied-upon material was not furnished to the exporter, and the assessment was finalised without disclosure of the basis for doubting the declared value. In such circumstances, rejection of the declared transaction value and enhancement on the basis of undisclosed contemporaneous data could not be sustained.

Conclusion: The rejection of the declared export value was held unsustainable, and the matter was remanded to the Adjudicating Authority for fresh decision in accordance with law.

Final Conclusion: The assessment was set aside and the dispute was sent back for reconsideration after complying with the prescribed valuation procedure and natural justice.

Ratio Decidendi: Declared export value cannot be rejected or enhanced unless the proper officer complies with the statutory valuation procedure, discloses the grounds and material relied upon, and grants a reasonable opportunity of hearing.

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