The CESTAT held that under Section 14 of the Customs Act and the...

The CESTAT held that under Section 14 of the Customs Act and the Valuation Rules, if the proper officer rejects the transaction value and re-determines the value, the re-determined value shall prevail; otherwise, the transaction value stands. An exporter is not liable to confiscation under Section 113(i) if the declared transaction value in the shipping bill matches the actual transaction value, even if later re-determined by the officer. Drawback is payable as a percentage of the FOB value, not the market value, provided the drawback amount does not exceed the market value as per Section 76(1)(b). Confiscation under Section 113(i), redemption fine under Section 125, and penalty under Section 114A imposed on the exporter were found unsustainable. The impugned order was set aside and the appeal allowed.

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