1996 (2) TMI 206 - AT - Customs

Summary

Issues:
1. Determination of assessable value of an imported car based on manufacturer's price list.
2. Application of discount on manufacturer's price list for imported cars.
3. Consideration of depreciation for accessories purchased along with the car.

Analysis:

The appellant imported a car with accessories and declared values for the car, air-conditioner, and cassette player. The Assistant Collector determined the assessable value based on the World Car Catalogue price of 1985 with a trade discount and depreciation. In appeal, the appellant argued that the value should be based on the manufacturer's price list with a 15% discount. The Collector (Appeals) disagreed, leading to the current appeal challenging the valuation method used.

In the case of Prem Kumar v. Collector of Customs, a three-member Bench directed assessing the imported car's value based on the World Car Catalogue price less 15% or the manufacturer's net price if available. The Tribunal clarified that a 15% discount cannot be applied to the invoice price. This decision was cited in Vijay Singh v. Collector of Customs, emphasizing the valuation methodology for imported cars.

Another relevant case cited was Air Vice Marshal S.K. Sareen v. Collector of Customs, where the Tribunal allowed a 15% discount on the manufacturer's price list for an imported Mercedes Benz car. The Supreme Court affirmed this decision, supporting the practice of discounting the manufacturer's tourist price list to arrive at the net price.

Consistently, in a similar case of Manmohan Singh Bhasin v. Collector of Customs, Bombay, the Tribunal upheld the practice of granting a 15% discount on the manufacturer's tourist price to determine the net price for imported cars. Following this precedent, the Tribunal in the current case directed the same discount to be applied to the appellant's imported car based on the manufacturer's price list.

Regarding the appellant's request for deductions for damages to the car's tires, the Tribunal found insufficient evidence to support this claim, leading to the rejection of this contention by the lower authorities. Additionally, the appellant's argument for depreciation on the air-conditioner and cassette player was accepted, reasoning that these accessories should depreciate along with the car since they were purchased together.

In conclusion, the Tribunal set aside the impugned order and directed the jurisdictional Assistant Commissioner to reassess the value based on the principles outlined in the judgment, allowing the appeal to that extent.