FOB Value was protected by privity of contract and couldn’t be modified by stranger

Isgec Heavy Engineering Ltd. Vs Commissioner of Customs (Export) (CESTAT Delhi)

Conclusion: FOB value was the product of negotiations and deliberations between the parties to the contract, which value could not be modified by any stranger to the contract by virtue of the principle of “privity of contract”. The FOB value of the individual components declared by the assessee, therefore, could not have been rejected.

Held: Assessee was engaged in manufacture and export of heavy engineering goods such as boilers and sugar plants, entered int

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