Customs Officer Is A Stranger To Contract Of Sale, Cannot Re-Determine FOB Value: CESTAT

The CESTAT has ruled that no one, including a customs officer, has the right to re-determine the Free on Board (FOB) value of goods if they are a stranger to the contract of sale. The tribunal emphasized that the FOB value is determined by the commercial contract between the buyer and seller. This ruling protects the sanctity of commercial contracts and limits the authority of customs officials to unilaterally alter agreed-upon transaction values. It provides clarity and certainty for importers and exporters regarding the valuation of goods for customs purposes.