2000 (10) TMI 111 - AT - Customs

Summary

Issues: Valuation of imported second-hand machines under Import Control Regulations.

In the judgment by the Appellate Tribunal CEGAT, CHENNAI, the appeals were filed by the same party for the import of second-hand machines under the Import Control Regulations. The appellants submitted a Chartered Engineer's certificate indicating the residual life of the machines. The Customs authorities rejected the certificate for valuation of the imported machinery but accepted it for establishing the value of new machines and determining the old and used conditions of the machines. The lower authorities granted ad hoc depreciation without providing reasons for the rate adopted and calculated the value under rule 8 of the Customs Valuation Rules, 1988, based on the discarded certificate's value. The Collector (Appeals) approved the rejection of the certificate's valuation under Rule 4 and determined the value under Rule 8, which was contested by the appellants. The Tribunal found that the transaction value can only be rejected under specified circumstances as per Rule 4(2) and not arbitrarily. The Tribunal criticized the authorities for selectively accepting parts of the certificate and not questioning its validity for Import Control Regulations, leading to inconsistencies in valuation. Ultimately, the Tribunal set aside the order, allowing the appeals and granting consequential benefits as per law.