9911796707
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Issues:
- Assessment of assessable value based on retail price vs. ex-works price - Calculation of depreciation percentage on the imported car - Consideration of freight charges in arriving at the assessable value Analysis: 1. The appeal was against an order passed by the Collector (Appeals), Calcutta, regarding the assessable value of an imported Volvo Saloon Car. The Assistant Collector calculated the value based on the retail price and allowed a discount and depreciation. The appellant contested this assessment, arguing for the use of the ex-works price, higher depreciation percentage, and lower freight charges. 2. The appellant challenged the assessment before the Collector (Appeals), citing a letter from M/s. Volvo Car Corporation regarding the ex-works price and disputing the depreciation and freight charges considered. However, the Collector (Appeals) upheld the original assessment, prompting the appeal to the Tribunal. 3. During the hearing, the appellant's advocate argued for the ex-works price, higher depreciation, and lower freight charges based on the letter from M/s. Volvo Car Corporation. The advocate referenced previous Tribunal decisions to support the appellant's contentions. 4. The Revenue, represented by the JDR, supported the Collector (Appeals)'s order, stating that the ex-works price was not applicable and defending the depreciation percentage and freight charges considered by the Assistant Collector. 5. The Tribunal reviewed the case records and considered arguments from both sides. Referring to previous decisions, the Tribunal emphasized assessing imported cars based on the World Car Catalogue price less discount. The Tribunal highlighted the need for consequential effect to be given to its orders. 6. The Tribunal found the assessment based on the retail price erroneous and unsustainable, directing reassessment based on the World Car Catalogue price. Additionally, the Tribunal agreed that freight charges from the country of manufacture were relevant, not from the country of shipment. 7. Regarding depreciation, the Tribunal noted that the 55% depreciation determined after inspection was adequate, in line with Board instructions. The Tribunal deemed the depreciation fair based on the car's condition. 8. Consequently, the Tribunal set aside the Collector (Appeals)'s order, remanding the case for reassessment by the Assistant Collector based on the World Car Catalogue price. The appellants were granted an opportunity to submit further evidence, with any consequential relief to be provided upon reassessment.
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