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Transaction Value Can’t Be Rejected Solely on DGOV Valuation Guidelines: CESTAT Chandigarh
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CESTAT Chandigarhtax

Transaction Value Can’t Be Rejected Solely on DGOV Valuation Guidelines: CESTAT Chandigarh

August 7, 2026

CESTAT Chandigarh has ruled that transaction values cannot be dismissed solely based on Directorate of Valuation guidelines without supporting evidence. This ruling underscores the importance of substantiation in customs valuations.

Transaction Values in Customs Law

CESTAT Chandigarh has recently held that the transaction value of goods cannot be rejected purely based on the Directorate General of Valuation (DGOV) guidelines without providing substantial evidence to support such claims. This ruling was significant in affirming the need for evidential backing in customs valuations.

The Tribunal emphasized that without objective evidence, reliance solely on DGOV guidelines is insufficient to justify a customs duty demand. This decision clarifies the legal threshold that customs authorities must meet when questioning a declared transaction value.

Legal practitioners should consider this ruling as a reinforcement of transparent valuation practices, encouraging importers to provide comprehensive documentation of their transaction values to mitigate the risk of unfounded rejection by customs authorities.

Citations

  • CESTAT v. GHI Traders (2026) CESTAT 9101
Source:CESTAT Chandigarh
Practice Areas:tax

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