2008 (6) TMI 42 - AT - Customs

Import of used Toyota Corolla Car of 1996 make revenue forcing the appellant to pay duty on the basis of car catalogue price of some different model - sale invoice issued by supplier mentioning the C&F price of the car has been produced by the appellant and there is no allegation that the price mentioned in this invoice has been misdeclared hence price mentioned in invoice of supplier cannot be rejected by taking recourse to Rule 8 of CVR - no reason to reject the transaction value

Summary

Issues:
Assessment of duty based on imported used car's value under Transfer of Residence Rules.

Analysis:
The appellant imported a used Toyota Corolla Car during transfer of residence from UAE to India in January 2000. The appellant claimed the car's value based on the invoice from M/s. Everest Used Cars, UAE, but Customs rejected it and determined the value using Parker's Car guide. The dispute revolved around the assessable value of the car, with the appellant claiming Rs. 1,97,978/- CIF and Customs determining it as Rs. 4,10,979/- based on a different model's price in the guide.

The appellant argued that the invoice from M/s. Everest Used Cars was genuine and should have been accepted for duty assessment, satisfying the conditions under Customs Valuation Rules. Cited Supreme Court judgments supported this argument. Additionally, the appellant highlighted discrepancies in the model used for valuation, emphasizing that the Deputy Commissioner erred in not accepting the invoice price.

The departmental representative defended Customs' valuation, citing a Tribunal judgment where determining a used car's value based on Parker's car guide was deemed justified in the absence of purchase price evidence. However, the appellant had provided a sale invoice, making this precedent inapplicable to the current case.

Upon careful consideration, the Tribunal found no reason to reject the invoice from M/s. Everest Used Cars as it reflected the true transaction value, meeting the conditions under Customs Valuation Rules. Precedents supported accepting the invoice price for used imported cars when no deliberate undervaluation was evident. The Tribunal set aside the impugned order, allowing the appeal with consequential relief.

In conclusion, the Tribunal's decision favored the appellant, emphasizing the importance of accepting genuine transaction values for duty assessment, especially in cases involving used imported cars under Transfer of Residence Rules.