FOB Value Of Goods Can't Be Modified By Anyone Including Any Customs Officer: CESTAT
Live LawThe New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal has stated that no stranger to the contract, including any Customs officer has any right to interfere with the Free on Board value of the goods. Tribunal's Observation The bench opined that no stranger to the contract, including any Customs officer has any right to interfere with the FOB value of the goods. The Tribunal observed that the power to notify rates of drawback is vested with the Central Government and if the rates of drawback are as a percentage of FOB value, drawback should be paid accordingly and no Customs officer has the power to ignore the FOB value and determine drawback based on any other value determined by him. The bench stated that “the entire investigation and the subsequent SCN and the adjudication proceedings were on the wrong impression that the Customs officers have the right to modify the FOB value or that drawback, MEIS and ROSL which, as per the drawback schedule and the FTP which have to be paid as a percentage of FOB could, instead, be paid on some other value determined by the officers.” In view of the above, the Tribunal allowed the appeal.
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