Customs Commissioner Cannot Re-Determine FOB Value for Export Benefits Under Section 14 of Customs Act

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....The CESTAT held that the Customs Commissioner lacked authority to re-determine the FOB value of export goods under the Customs Act, 1962. While duty liability is based on the assessable value determined under section 14, export incentives such as Drawback and DEPB are calculated on the declared FOB transaction value agreed between exporter and overseas buyer. The Tribunal found that the Commissioner's order, which sought to recover export benefits, confiscate goods, and impose penalties based on a re-determined FOB value, was without legal sanction. Market surveys and investigations by the DRI cannot alter the contractually agreed FOB value. Consequently, the impugned order was quashed, and the appeal allowed, affirming that only the declared transaction value governs export incentives and related obligations.....