2015 (11) TMI 1456

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.... be "football goalkeeper gloves of leather". The revenue authorities on the prima facie examination came to a conclusion that the goods were overvalued for claiming ineligible duty drawback from the government. Further investigation was taken up and on the request of the appellant consignment was cleared for export provisionally. Lower authorities redetermined the value of export under Rule 6 of Customs Valuation (Determination of Value of Export Goods) Rules, 2007 (hereinafter referred to as Valuation Rules); lower authorities also ascertained the value of the goods based on market enquiry in the wholesale market in the presence of appellants representative and rejected the declared FOB value and re-determined the F.O.B. value and restrict....

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....wer authorities. He would submit that the lower authorities have ascertained the market value as per the valuation rules and the same was also endorsed by the appellant. He would submit that the appellant now cannot deny the acceptance of the market value by producing the invoices now. 5. We have considered the submissions made at length by both sides and perused the records. 6. The issue in hand is regarding the valuation of the goods for export which are "football goalkeeper gloves". It is the case of the revenue that the value as claimed by the appellant is high and the correct value as per the market enquiry is less and the appellant has not evidenced the value claimed by him, hence as per the provisions of Rule 6 of the Valuation....

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....most a suspicion as to the declared value being erroneous, in that case, revenue can and surely proceed with the re-determination of the export value by adopting the procedures laid down in valuation rules. We find that the adjudicating authority has directly jumped to the provisions of Rule 6 of the Valuation Rules, without applying provisions of Rule 4 and 5 of the Valuation Rules. On perusal of the said valuation rules, we find that the appropriate rule that should have been applied by the revenue in this case is Rule 5 which we reproduce. "Computed value method - If the value cannot be determined under Rule 4, it shall be based on a computed value, which shall include the following: a) cost of production, manufacture o....