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Issues:
1. Denial of further depreciation for arriving at the assessable value. 2. Plea for adopting a graded reduced scale for valuation. 3. Application of depreciation on a sliding scale for second-hand cars. 4. Interpretation and application of circular issued by Vadodara Collectorate for valuation of second-hand cars. Analysis: 1. The appeal was filed against the denial of further depreciation for determining the assessable value of a car by the Collector of Customs (Appeals). The lower authority had granted 46% depreciation for the period from July 1984 to June 1988 but refused additional depreciation beyond that based on the condition of the car. The appellant contended that the car was entitled to 70% depreciation due to its age, but the lower authority disagreed, stating that the depreciation should be based on the actual condition of the car. 2. The appellant's consultant argued for adopting a graded reduced scale for valuation similar to second-hand machinery in other cases. The consultant clarified that the car was no longer available for inspection, and there was no evidence to show a lower price for a similar model in the international market. The Department's representative opposed any reduction in value, citing the existing slab system of depreciation for second-hand cars. 3. The circular issued by the Vadodara Collectorate post-order stated that depreciation for used motor vehicles over 4 years old should be allowed on a sliding scale up to 70%. The consultant argued that this method should be applied to the appellant's case, as accepted by the Department for second-hand machinery. The Tribunal acknowledged the need to consider the condition of the car and international prices for second-hand cars in valuation. 4. The Tribunal observed that the valuation of second-hand cars required considering various parameters, including the car's condition and international market prices. The circular provided a method for depreciation up to 70% for cars over 4 years old. The Tribunal found merit in the appellant's plea to re-fix the car's value based on the circular and directed a re-evaluation by the lower authority, emphasizing the need for a method ensuring valuation in line with Section 14 of the Customs Act, 1962.
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