2009 (3) TMI 92 - SC - Customs

Whether Photocopying Machines, during the relevant period, were freely importable or whether their import needed import licence - In view of decision in the case of M/s Atul Commodities Pvt. Ltd., held that subject goods were freely importable during the relevant period - Whether the Department was right in invoking Rule 10A of CVR this question is also answered in favour of the assessee because there is no material on record (except the information from the website) to enhance the value

Summary

Issues:
1. Whether Photocopying Machines were freely importable during the relevant period or required an import license under the Foreign Trade Policy?
2. Whether the Department was justified in invoking Rule 10A of the Customs Valuation Rules, 1988?

Analysis:

Issue 1:
The Supreme Court, in reference to a previous decision, held that Photocopying Machines were freely importable during the relevant period. The Court referred to a specific case and ruled in favor of the importer, stating that the subject goods did not require an import license. The Court decisively answered the first question in favor of the assessee and against the Department.

Issue 2:
Regarding the invocation of Rule 10A of the Customs Valuation Rules, the Court examined the examination report by Chartered Engineers, which indicated that the machines were old, obsolete, and non-functional without modifications. Despite this report, the adjudicating Authority did not accept it, citing lack of material to enhance the value. The Court found no fault in the Tribunal's decision, emphasizing the absence of crucial information like the year of manufacture and comparable imports. Consequently, the Court ruled in favor of the assessee(s) and against the Department on this issue as well.

In conclusion, the Supreme Court dismissed the Civil Appeals filed by the Department, with no order as to costs, based on the findings in favor of the importer on both issues raised in the case.