#Valuation Methodology

The Gujarat High Court ruled that a District Valuation Committee report is valid evidence for compensation when sale deeds are missing, and upheld the 60 % market-value deduction with a 10 % annual escalation. This sets a clear valuation method for land acquired under the Land Acquisition Act, 1894, affecting both landowners and acquiring authorities.

The Bombay High Court ruled that when no transactions of vacant land exist, compensation may be determined using sales of built-up properties, provided the land value is isolated and adjusted for structural, location, and usage differences. This sets a critical precedent for landowners and acquisition authorities in urban areas where open land sales are scarce, shifting valuation away from rigid Ready Reckoner rates toward market-driven, evidence-based assessments.

Bombay High Court rules that mesne profits payable by government entities must be determined based on comparable market data rather than standard commercial rates, ensuring equitable valuation. The judgment underscores that state-owned undertakings are entitled to moderated rates, reflecting their non-commercial status and public function.

CESTAT Hyderabad ruled that excise duty valuation under Rule 7 must be based on the actual transaction value, rejecting the Department's demand predicated on the highest price of the week. The Tribunal emphasized the one-to-one correlation between factory clearance and depot sales, invalidating arbitrary valuation methods that disregard contractual agreements.