CESTAT sets aside customs valuation enhancement due to procedurally flawed surrogate value determination under Rule 9

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....CESTAT allowed the appeal challenging valuation enhancement of imported remote control devices and transformers. The adjudicating authority rejected the declared value and determined surrogate value under Rule 9 of Customs Valuation Rules, 2007, relying on market survey reports and coerced statements. CESTAT held that while rejection under Rule 12 may be valid, surrogate value must derive authenticity from Rules 4-9 applied sequentially. The market survey report lacked credibility as it was not adjusted per Rules 7-8 requirements, cross-examination of surveying officers was denied, and the authority failed to conform with Rule 9's best judgment provisions. The tribunal found the substitution of surrogate value procedurally flawed despite valid rejection of declared value, setting aside the impugned order completely.....