{"id":9837,"date":"2026-06-29T23:53:12","date_gmt":"2026-06-29T18:23:12","guid":{"rendered":"https:\/\/www.centaxonline.com\/blog\/?p=9837"},"modified":"2026-06-29T23:53:12","modified_gmt":"2026-06-29T18:23:12","slug":"export-fob-value-cant-be-reworked-on-market-value-cestat","status":"publish","type":"post","link":"https:\/\/www.centaxonline.com\/blog\/export-fob-value-cant-be-reworked-on-market-value-cestat","title":{"rendered":"Export FOB Value Can&#8217;t Be Reworked on Market Value | CESTAT"},"content":{"rendered":"<pre><strong>Case Details:\u00a0<a href=\"https:\/\/www.centaxonline.com\/latest-news-updates\/customs\/101010000000420776\/negotiated-export-fob-value-cant-be-redetermined-on-market-value-no-drawback-if-it-exceeds-market-value-cestat\">Modak Dyeing &amp; Printing Co. Pvt. Ltd. vs. Commissioner of Customs, ICD, Tughlakabad (2026) 42 Centax 480 (Tri.-Del)<\/a><\/strong><\/pre>\n<h2><em>Judiciary and Counsel Details<\/em><\/h2>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><strong>Dr Ms. Rachna Gupta<\/strong>, Member (J) &amp;<strong> Shri P.V. Subba Rao<\/strong>, Member (T)<\/li>\n<li><strong>Shri R.K. Hasija<\/strong>, Advocate, for the Appellant.<\/li>\n<li><strong>Shri Rajesh Singh<\/strong>, Authorised Representative, for the Respondent.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><em>Facts of the Case<\/em><\/h2>\n<p>The appellant exported Girls&#8217; Woven Frocks through two shipping bills dated 31.08.2018, declaring an FOB value of \u20b94.10 crore, equivalent to \u20b9274.13 per piece. The Department alleged that the goods were overvalued to avail excess export incentives, including duty drawback, ROSL, MEIS and IGST refund. Based on a market enquiry indicating a domestic market value of \u20b945\u2013\u20b965 per piece, the Department rejected the declared FOB value under Rule 8 of the Customs Valuation (Determination of Value of Export Goods) Rules, 2007 and re-determined the value at \u20b950 per piece under Rule 6. The adjudicating authority confiscated the goods under section 113(i) of the Customs Act, imposed a redemption fine and penalties, and the Commissioner (Appeals) upheld the order. The appellant challenged the re-determination of value, confiscation and penalties before the Tribunal.<\/p>\n<h2><em>CESTAT Held<\/em><\/h2>\n<p>The Tribunal held that the FOB value of export goods is the transaction value agreed between the buyer and seller and cannot be altered by Customs authorities merely on the basis of domestic market value. Rejection of transaction value under the Export Valuation Rules only permits re-determination of assessable value and does not change the contractual FOB value. Since drawback and MEIS benefits are linked to FOB value and not assessable value, re-determination of FOB value was unsustainable. The Tribunal further held that under section 76(1)(b) of the Customs Act, drawback can be denied only where the amount of drawback exceeds the market value of the goods; otherwise, the declared transaction value cannot be substituted with market value. As the value declared in the shipping bills was the transaction value and there was no allegation that it differed from the actual contractual value, confiscation under section 113(i), redemption fine, and penalties were not sustainable. Accordingly, the impugned order was set aside, and the appeal was allowed.<\/p>\n<h2><em>List of Cases Cited<\/em><\/h2>\n<p><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2003%20(155)%20E.L.T.%20423%20(S.C.)&amp;itemType=AP\">Om Prakash Bhatia v. Commissioner<\/a> \u2014 2003 (155) E.L.T. 423 (S.C.) \u2014 Referred [Paras 18, 19]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Case Details:\u00a0Modak Dyeing &amp; Printing Co. Pvt. Ltd. vs. Commissioner of Customs,&hellip;<\/p>\n","protected":false},"author":19,"featured_media":9860,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38,177,47],"tags":[],"class_list":["post-9837","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>Export FOB Value Can&#039;t Be Reworked on Market Value | CESTAT<\/title>\n<meta name=\"description\" content=\"CESTAT held that negotiated export FOB value cannot be replaced by market value. Drawback can be denied only if it exceeds the market value of goods.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.centaxonline.com\/blog\/export-fob-value-cant-be-reworked-on-market-value-cestat\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Export FOB Value Can&#039;t Be Reworked on Market Value | CESTAT\" \/>\n<meta property=\"og:description\" content=\"CESTAT held that negotiated export FOB value cannot be replaced by market value. Drawback can be denied only if it exceeds the market value of goods.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.centaxonline.com\/blog\/export-fob-value-cant-be-reworked-on-market-value-cestat\" \/>\n<meta property=\"og:site_name\" content=\"Centax-Blogs\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/centaxindia\" \/>\n<meta property=\"article:published_time\" content=\"2026-06-29T18:23:12+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2026\/06\/2.-Export-FOB-Value-Cant-Be-Reworked-on-Market-Value.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"920\" \/>\n\t<meta property=\"og:image:height\" content=\"540\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Centax\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Centax\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.centaxonline.com\/blog\/export-fob-value-cant-be-reworked-on-market-value-cestat#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.centaxonline.com\/blog\/export-fob-value-cant-be-reworked-on-market-value-cestat\"},\"author\":{\"name\":\"Centax\",\"@id\":\"https:\/\/www.centaxonline.com\/blog\/#\/schema\/person\/f4400180c72e79f30e22a263f2d8fd0a\"},\"headline\":\"Export FOB Value Can&#8217;t Be Reworked on Market Value | CESTAT\",\"datePublished\":\"2026-06-29T18:23:12+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.centaxonline.com\/blog\/export-fob-value-cant-be-reworked-on-market-value-cestat\"},\"wordCount\":356,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.centaxonline.com\/blog\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.centaxonline.com\/blog\/export-fob-value-cant-be-reworked-on-market-value-cestat#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2026\/06\/2.-Export-FOB-Value-Cant-Be-Reworked-on-Market-Value.jpg\",\"articleSection\":[\"Customs\",\"News\",\"Case Chronicles\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.centaxonline.com\/blog\/export-fob-value-cant-be-reworked-on-market-value-cestat#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.centaxonline.com\/blog\/export-fob-value-cant-be-reworked-on-market-value-cestat\",\"url\":\"https:\/\/www.centaxonline.com\/blog\/export-fob-value-cant-be-reworked-on-market-value-cestat\",\"name\":\"Export FOB Value Can't Be Reworked on Market Value | CESTAT\",\"isPartOf\":{\"@id\":\"https:\/\/www.centaxonline.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.centaxonline.com\/blog\/export-fob-value-cant-be-reworked-on-market-value-cestat#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.centaxonline.com\/blog\/export-fob-value-cant-be-reworked-on-market-value-cestat#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2026\/06\/2.-Export-FOB-Value-Cant-Be-Reworked-on-Market-Value.jpg\",\"datePublished\":\"2026-06-29T18:23:12+00:00\",\"description\":\"CESTAT held that negotiated export FOB value cannot be replaced by market value. Drawback can be denied only if it exceeds the market value of goods.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.centaxonline.com\/blog\/export-fob-value-cant-be-reworked-on-market-value-cestat#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.centaxonline.com\/blog\/export-fob-value-cant-be-reworked-on-market-value-cestat\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.centaxonline.com\/blog\/export-fob-value-cant-be-reworked-on-market-value-cestat#primaryimage\",\"url\":\"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2026\/06\/2.-Export-FOB-Value-Cant-Be-Reworked-on-Market-Value.jpg\",\"contentUrl\":\"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2026\/06\/2.-Export-FOB-Value-Cant-Be-Reworked-on-Market-Value.jpg\",\"width\":920,\"height\":540,\"caption\":\"Export FOB Value\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.centaxonline.com\/blog\/export-fob-value-cant-be-reworked-on-market-value-cestat#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.centaxonline.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Export FOB Value Can&#8217;t Be Reworked on Market Value | CESTAT\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.centaxonline.com\/blog\/#website\",\"url\":\"https:\/\/www.centaxonline.com\/blog\/\",\"name\":\"Centax-Blogs\",\"description\":\"\",\"publisher\":{\"@id\":\"https:\/\/www.centaxonline.com\/blog\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.centaxonline.com\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.centaxonline.com\/blog\/#organization\",\"name\":\"Centax-Blogs\",\"url\":\"https:\/\/www.centaxonline.com\/blog\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.centaxonline.com\/blog\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2023\/12\/CNETAX-LOGO-1.webp\",\"contentUrl\":\"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2023\/12\/CNETAX-LOGO-1.webp\",\"width\":536,\"height\":133,\"caption\":\"Centax-Blogs\"},\"image\":{\"@id\":\"https:\/\/www.centaxonline.com\/blog\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/centaxindia\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.centaxonline.com\/blog\/#\/schema\/person\/f4400180c72e79f30e22a263f2d8fd0a\",\"name\":\"Centax\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.centaxonline.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/795c4221b76ac6ccc3cbba0cc63dd055?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/795c4221b76ac6ccc3cbba0cc63dd055?s=96&d=mm&r=g\",\"caption\":\"Centax\"},\"url\":\"https:\/\/www.centaxonline.com\/blog\/author\/centax-editorial-team\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Export FOB Value Can't Be Reworked on Market Value | CESTAT","description":"CESTAT held that negotiated export FOB value cannot be replaced by market value. Drawback can be denied only if it exceeds the market value of goods.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.centaxonline.com\/blog\/export-fob-value-cant-be-reworked-on-market-value-cestat","og_locale":"en_US","og_type":"article","og_title":"Export FOB Value Can't Be Reworked on Market Value | CESTAT","og_description":"CESTAT held that negotiated export FOB value cannot be replaced by market value. Drawback can be denied only if it exceeds the market value of goods.","og_url":"https:\/\/www.centaxonline.com\/blog\/export-fob-value-cant-be-reworked-on-market-value-cestat","og_site_name":"Centax-Blogs","article_publisher":"https:\/\/www.facebook.com\/centaxindia","article_published_time":"2026-06-29T18:23:12+00:00","og_image":[{"width":920,"height":540,"url":"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2026\/06\/2.-Export-FOB-Value-Cant-Be-Reworked-on-Market-Value.jpg","type":"image\/jpeg"}],"author":"Centax","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Centax","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.centaxonline.com\/blog\/export-fob-value-cant-be-reworked-on-market-value-cestat#article","isPartOf":{"@id":"https:\/\/www.centaxonline.com\/blog\/export-fob-value-cant-be-reworked-on-market-value-cestat"},"author":{"name":"Centax","@id":"https:\/\/www.centaxonline.com\/blog\/#\/schema\/person\/f4400180c72e79f30e22a263f2d8fd0a"},"headline":"Export FOB Value Can&#8217;t Be Reworked on Market Value | CESTAT","datePublished":"2026-06-29T18:23:12+00:00","mainEntityOfPage":{"@id":"https:\/\/www.centaxonline.com\/blog\/export-fob-value-cant-be-reworked-on-market-value-cestat"},"wordCount":356,"commentCount":0,"publisher":{"@id":"https:\/\/www.centaxonline.com\/blog\/#organization"},"image":{"@id":"https:\/\/www.centaxonline.com\/blog\/export-fob-value-cant-be-reworked-on-market-value-cestat#primaryimage"},"thumbnailUrl":"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2026\/06\/2.-Export-FOB-Value-Cant-Be-Reworked-on-Market-Value.jpg","articleSection":["Customs","News","Case Chronicles"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.centaxonline.com\/blog\/export-fob-value-cant-be-reworked-on-market-value-cestat#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.centaxonline.com\/blog\/export-fob-value-cant-be-reworked-on-market-value-cestat","url":"https:\/\/www.centaxonline.com\/blog\/export-fob-value-cant-be-reworked-on-market-value-cestat","name":"Export FOB Value Can't Be Reworked on Market Value | CESTAT","isPartOf":{"@id":"https:\/\/www.centaxonline.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.centaxonline.com\/blog\/export-fob-value-cant-be-reworked-on-market-value-cestat#primaryimage"},"image":{"@id":"https:\/\/www.centaxonline.com\/blog\/export-fob-value-cant-be-reworked-on-market-value-cestat#primaryimage"},"thumbnailUrl":"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2026\/06\/2.-Export-FOB-Value-Cant-Be-Reworked-on-Market-Value.jpg","datePublished":"2026-06-29T18:23:12+00:00","description":"CESTAT held that negotiated export FOB value cannot be replaced by market value. Drawback can be denied only if it exceeds the market value of goods.","breadcrumb":{"@id":"https:\/\/www.centaxonline.com\/blog\/export-fob-value-cant-be-reworked-on-market-value-cestat#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.centaxonline.com\/blog\/export-fob-value-cant-be-reworked-on-market-value-cestat"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.centaxonline.com\/blog\/export-fob-value-cant-be-reworked-on-market-value-cestat#primaryimage","url":"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2026\/06\/2.-Export-FOB-Value-Cant-Be-Reworked-on-Market-Value.jpg","contentUrl":"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2026\/06\/2.-Export-FOB-Value-Cant-Be-Reworked-on-Market-Value.jpg","width":920,"height":540,"caption":"Export FOB Value"},{"@type":"BreadcrumbList","@id":"https:\/\/www.centaxonline.com\/blog\/export-fob-value-cant-be-reworked-on-market-value-cestat#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.centaxonline.com\/blog\/"},{"@type":"ListItem","position":2,"name":"Export FOB Value Can&#8217;t Be Reworked on Market Value | CESTAT"}]},{"@type":"WebSite","@id":"https:\/\/www.centaxonline.com\/blog\/#website","url":"https:\/\/www.centaxonline.com\/blog\/","name":"Centax-Blogs","description":"","publisher":{"@id":"https:\/\/www.centaxonline.com\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.centaxonline.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.centaxonline.com\/blog\/#organization","name":"Centax-Blogs","url":"https:\/\/www.centaxonline.com\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.centaxonline.com\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2023\/12\/CNETAX-LOGO-1.webp","contentUrl":"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2023\/12\/CNETAX-LOGO-1.webp","width":536,"height":133,"caption":"Centax-Blogs"},"image":{"@id":"https:\/\/www.centaxonline.com\/blog\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/centaxindia"]},{"@type":"Person","@id":"https:\/\/www.centaxonline.com\/blog\/#\/schema\/person\/f4400180c72e79f30e22a263f2d8fd0a","name":"Centax","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.centaxonline.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/795c4221b76ac6ccc3cbba0cc63dd055?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/795c4221b76ac6ccc3cbba0cc63dd055?s=96&d=mm&r=g","caption":"Centax"},"url":"https:\/\/www.centaxonline.com\/blog\/author\/centax-editorial-team"}]}},"_links":{"self":[{"href":"https:\/\/www.centaxonline.com\/blog\/wp-json\/wp\/v2\/posts\/9837","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.centaxonline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.centaxonline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.centaxonline.com\/blog\/wp-json\/wp\/v2\/users\/19"}],"replies":[{"embeddable":true,"href":"https:\/\/www.centaxonline.com\/blog\/wp-json\/wp\/v2\/comments?post=9837"}],"version-history":[{"count":3,"href":"https:\/\/www.centaxonline.com\/blog\/wp-json\/wp\/v2\/posts\/9837\/revisions"}],"predecessor-version":[{"id":9861,"href":"https:\/\/www.centaxonline.com\/blog\/wp-json\/wp\/v2\/posts\/9837\/revisions\/9861"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.centaxonline.com\/blog\/wp-json\/wp\/v2\/media\/9860"}],"wp:attachment":[{"href":"https:\/\/www.centaxonline.com\/blog\/wp-json\/wp\/v2\/media?parent=9837"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.centaxonline.com\/blog\/wp-json\/wp\/v2\/categories?post=9837"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.centaxonline.com\/blog\/wp-json\/wp\/v2\/tags?post=9837"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}