1994 (9) TMI 155 - AT - Customs

Summary

Issues:
1. Assessment of imported car without certain accessories.
2. Rejection of appeal by lower authorities.
3. Determination of assessable value based on abatement and deductions.

Analysis:
1. The appellant, a Skin Specialist, imported a V.W. Passat GLD car (1980 Model) which was used as a demonstration car by Volkswagon. The car had missing fittings like air-conditioner and radio cassette, which were not imported into India. The Assistant Collector assessed the car's value at Rs. 39,403 after various deductions. The appellant contended that the starting point for valuation should be the actual purchase value of DM 14,605, with abatements for missing accessories and replacement costs.

2. The appellant appealed to the Collector of Customs (Appeals) after the Assistant Collector's order. The Collector rejected the appeal, leading to further legal proceedings. The appellant's counsel argued for a revised valuation method based on the actual purchase value and abatements for missing accessories, emphasizing the need for proper deductions and discounts in the assessment process.

3. The Tribunal considered the submissions and emphasized that imported goods must be assessed in the condition they are imported. Since the car was used and lacked certain standard accessories, the assessable value needed adjustment. The Tribunal directed a reassessment of the car's value, allowing abatements for missing accessories like air-conditioner, radio cassette, and replacement of defective glass. The final assessment was calculated based on the purchase price of DM 14,605, with deductions and allowances, resulting in an assessable value of Rs. 29,581.55. The appeal was disposed of in favor of the appellant based on the reassessment criteria outlined by the Tribunal.