CESTAT allowed the appeal challenging mis-declaration and...

CESTAT allowed the appeal challenging mis-declaration and mis-classification of export goods. The Tribunal held that Customs authorities lacked jurisdiction to re-determine FOB value, which represents the transaction value agreed between buyer and seller under international commercial terms. While Customs officers may reject transaction value for duty assessment purposes using alternative valuation methods, they cannot modify the actual FOB value itself. Export incentives and duty drawback must be calculated on declared FOB value, not officer-determined assessable value, as these incentives encourage exports based on actual remittances received. Since the exporter realized remittance per declared FOB value, the Commissioner (Appeals) erred in dismissing this fact. Consequently, confiscation of goods, redemption fine, penalties, and appropriation of export incentives against penalties were all set aside as legally unsustainable.