2017 (9) TMI 1502 - AT - Customs

Valuation of imported goods - used Mercedes Benz car, Model E230 and one used Yamaha motorcycle model FZ600 - reference to Parker s Guide - Held that - for valuation of such used car has to be done on the basis of Parker s Guide by giving appropriate Depreciation, Trade Discount and VAT Discount. Such a procedure has also been approved by the Tribunal in the case of Sunil Kumar Gupta Vs. Commissioner of Customs, Nava Sheva 1999 (10) TMI 557 - CEGAT, MUMBAI - appeal allowed - decided in favor of Revenue.

Summary

Issues: Valuation of used car for customs assessment based on different sources

Analysis:
The case involved an appeal against Order-in-Appeal No. C.CUS.235/06, dated 24.03.2006, concerning the valuation of a used Mercedes Benz car imported along with a motorcycle. The importer, Mr. Stuart Clarke, declared the value of the car at GBP 1,850, which was deemed too low upon examination. The Customs House referred to Parker's Guide for valuation, considering depreciation, trade discount, and VAT discount. The Commissioner (Appeals) ordered assessment based on the price submitted by the Indian dealer of Mercedes Benz, which was lower than the Parker's Guide valuation. The Revenue challenged this decision, arguing that the assessment should be based on Parker's Guide, as it is the standard practice. Three prices were considered for valuation: Parker's Guide, temporary certificate in the country of export, and the Indian dealer's price. The Tribunal noted the long-established practice of using Parker's Guide for valuation and approved method of giving appropriate discounts. The decision was influenced by a previous case, Sunil Kumar Gupta Vs. Commissioner of Customs, Nava Sheva, where a similar valuation method was upheld. Consequently, the appeal by Revenue was allowed, and the valuation based on Parker's Guide was accepted for customs assessment.