CESTAT held that FOB is an INCOTERM reflecting the exporter's...

CESTAT held that FOB is an INCOTERM reflecting the exporter's transaction value and that an exporter's declared transaction value in the shipping bill cannot be treated as automatically liable to confiscation merely because a proper officer subsequently re-determines value under the Export Valuation Rules. The Tribunal found no evidence of a parallel undisclosed transaction value and concluded that confiscation under s.113(i), redemption fine under s.125 and penalties under ss.114(i) and 114AA could not be sustained where the exporter had honestly declared FOB transaction value. The impugned order was set aside and the appeal allowed.