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Issues: Valuation of imported second hand Computer and peripherals, mis-declaration, confiscation of goods, assessment of customs duty.
In this case, the appellants imported a second hand Computer and its peripherals, declaring a value of Rs. 3,10,270. The adjudicating Collector assessed the value at Rs. 15,06,217 and imposed a fine of Rs. 1 lakh in lieu of confiscation due to alleged mis-declaration and short-fall in the import license value. The main issue was the valuation of the imported goods. The appellants argued that the Computer, purchased by a non-resident Indian in Dubai and imported under the NRI Scheme, had a lower value based on its age and specifications. The Collector, however, based the assessment on the value of a newer model with different specifications, leading to a significant difference in valuation. The dispute centered around the method of valuation used by the Collector. The appellants contended that valuing second hand Computers based on depreciation was inaccurate due to the rapid obsolescence of computer models. They presented evidence from a Blue Book showing fluctuating market prices for used Computers, which the department failed to counter. The appellants proposed three alternative base prices for duty calculation, including the value declared by them, the Chartered Engineer's assessment, and a lower quotation from the Blue Book, which the tribunal found reasonable and accepted. The tribunal found the appellants' offer to pay duty based on the highest of the three proposed base prices reasonable and accepted it. Since the import license had a higher value limit than the declared value, and there was no evidence of deliberate under-valuation, the tribunal concluded that confiscation of goods and imposition of a fine were not justified. As a result, the tribunal allowed the appeal, setting aside the fine and ordering the valuation of the goods for customs duty in accordance with the highest price proposed by the appellants. Consequential relief was granted to the appellants, resolving the valuation dispute and customs duty assessment in their favor.
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