Customs Officer being Stranger to Sale Contract cannot re-determine FOB Value: CESTAT

The CESTAT has ruled that a customs officer, being a stranger to the sale contract, cannot re-determine the Free on Board (FOB) value of goods. The tribunal emphasized that the FOB value is determined by the commercial contract between the buyer and seller. Customs officers cannot unilaterally alter this value unless there is evidence of fraud or misrepresentation. This ruling protects the sanctity of commercial contracts and limits the scope for customs authorities to interfere with agreed-upon transaction values. It provides clarity and certainty for importers and exporters regarding the valuation of goods for customs purposes.