{"id":4187,"date":"2025-06-05T09:19:24","date_gmt":"2025-06-05T03:49:24","guid":{"rendered":"https:\/\/www.centaxonline.com\/blog\/?p=4187"},"modified":"2025-06-05T09:19:24","modified_gmt":"2025-06-05T03:49:24","slug":"fob-value-in-shipping-bill-valid-unless-proven-otherwise-cestat","status":"publish","type":"post","link":"https:\/\/www.centaxonline.com\/blog\/fob-value-in-shipping-bill-valid-unless-proven-otherwise-cestat","title":{"rendered":"FOB Value in Shipping Bill Valid Unless Proven Otherwise | CESTAT"},"content":{"rendered":"<pre><strong>Case Details: <a href=\"https:\/\/www.centaxonline.com\/latest-news-updates\/customs\/101010000000399008\/fob-value-declared-in-shipping-bill-must-be-accepted-unless-proved-incorrect-with-credible-evidence-cestat\">Kritika Enterprises Versus Commissioner of Customs (Appeals), New Delhi (2025) 30 Centax 407 (Tri.-Del)<\/a><\/strong><\/pre>\n<h2><em>Judiciary and Counsel Details<\/em><\/h2>\n<ul>\n<li><strong>Justice Dilip Gupta<\/strong>, President &amp; <strong>Shri P.V. Subba Rao<\/strong>, Member (T)<\/li>\n<li><strong>Shri B. Venugopal<\/strong>, Adv., for the Appellant.<\/li>\n<li><strong>Shri Shashi Kant Sharma<\/strong>, Authorised Representative, for the Respondent.<\/li>\n<\/ul>\n<h2><em>Facts of the Case<\/em><\/h2>\n<p>The appellant-exporter declared a Free on Board (FOB) value in the Shipping Bill which was challenged by the jurisdictional officer under Customs on the allegation that a higher value was declared to illegitimately claim benefits under the Merchandise Exports Incentive Scheme and for IGST refund purposes. The Customs authorities re-determined the FOB value under Rule 6 of the Customs Valuation (Determination of Export Goods) Rules, 2007, invoking their power under Section 14 of the Customs Act, 1962, and rejected the declared transaction value.<\/p>\n<p>The Commissioner (Appeals) upheld the Customs re-determination, favouring the custom authorities. The appellant subsequently filed an appeal before the Hon\u2019ble CESTAT, contesting the Commissioner (Appeals) order and seeking acceptance of the declared FOB value as per the Shipping Bill.<\/p>\n<h2><em>CESTAT Held<\/em><\/h2>\n<p>The Hon\u2019ble CESTAT held that the FOB value declared in the Shipping Bill is the price paid or payable by the buyer to the exporter and represents the product of negotiation between them. The Tribunal observed that no third party, including Customs officers, has the authority to re-determine this value. It was noted that Section 14 of the Customs Act, 1962 and the Customs Valuation Rules, 2007 empower the proper officer to determine the assessable value only where the declared transaction value cannot be accepted and to apply other valuation methods as prescribed.<\/p>\n<p>The Tribunal concluded that the declared FOB value must be accepted unless credible documentary evidence establishes its incorrectness. Further, once the FOB value is accepted, benefits arising from it, including incentive schemes and IGST refunds, automatically follow.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Case Details: Kritika Enterprises Versus Commissioner of Customs (Appeals), New Delhi (2025)&hellip;<\/p>\n","protected":false},"author":8,"featured_media":4203,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38,177,47],"tags":[],"class_list":["post-4187","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-customs","category-customs-news","category-custom-case-chronicles"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>FOB Value in Shipping Bill Valid Unless Proven Otherwise | CESTAT<\/title>\n<meta name=\"description\" content=\"CESTAT overturns Customs\u2019 re-determination of FOB value, upholding exporter\u2019s declared price; MEIS &amp; IGST refund granted \u2013 Kritika Enterprises v. 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