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264 EXCISE LAW TIMES [ Vol. 372

6. Residual method. - Subject to the provisions of Rule 3, where the value
of the export goods cannot be determined under the provisions of Rules 4
and 5, the value shall be determined using reasonable means consistent
with the principles and general provisions of these rules provided that local
market price of the export goods may not be the only basis for determining
the value of export goods.
7. Declaration by the exporter. - The exporter shall furnish a declaration
relating to the value of export goods in the manner specified in this behalf.
8. Rejection of declared value. - (1) When the proper officer has reason to
doubt the truth or accuracy of the value declared in relation to any export
goods, he may ask the exporter of such goods to furnish further infor-
mation including documents or other evidence and if, after receiving such
further information, or in the absence of a response of such exporter, the
proper officer still has reasonable doubt about the truth or accuracy of the
value so declared, the transaction value shall be deemed to have not been
determined in accordance with sub-rule (1) of rule 3.
(2) At the request of an exporter, the proper officer shall intimate the
exporter in writing the ground for doubting the truth or accuracy of the
value declared in relation to the export goods by such exporter and provide
a reasonable opportunity of being heard, before taking a final decision un-
der sub-rule (1).
Explanation. - For the removal of doubts, it is hereby declared that -
(i) This rule by itself does not provide a method for determina-
tion of value, it provides a mechanism and procedure for re-
jection of declared value in cases where there is reasonable
doubt that the declared value does not represent the transac-
tion value; where the declared value is rejected, the value shall
be determined by proceeding sequentially in accordance with
rules 4 to 6.
(ii) The declared value shall be accepted where the proper officer
is satisfied about the truth or accuracy of the declared value
after the said enquiry in consultation with the exporter.
(iii) The proper officer shall have the powers to raise doubts on the
declared value based on certain reasons which may include -
(a) the significant variation in value at which goods of like
kind and quality exported at or about the same time in
comparable quantities in a comparable commercial
transaction were assessed.
(b) the significantly higher value compared to the market
value of goods of like kind and quality at the time of ex-
port.
(c) the misdeclaration of goods in parameters such as de-
scription, quality, quantity, year of manufacture or pro-
duction.”
16. It is apparent from the order that Adjudicating Authority has not
followed Rule 4 of the Customs Valuation Rules and directly came to Rule 5(a)
and (c) thereof, which is legally incorrect. From the impugned order it is not evi-
dent as to why Rules 3 and 4 of the Export Valuation Rules has been discarded.
Even remotely considering that Rule 5(a) or (c) of Export Valuation Rule is to be
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