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Issues: Valuation of imported vehicle based on manufacturer's net price to wholesale dealers versus invoice price.
In the case before the Appellate Tribunal CEGAT, New Delhi, the appellants imported a Mitsubishi Pajero Vehicle and requested assessment based on the manufacturer's certificate indicating a net price to wholesale dealers. The Assistant Collector of Customs rejected this and valued the vehicle at the invoice price, considering it as the transaction value per Section 14(1) of the Customs Act, 1962. The total duty was calculated based on this assessment. The lower appellate authority upheld the Assistant Collector's decision, leading to the current appeal. The appellants relied on a previous Tribunal judgment stating that valuation could be based on the manufacturer's net price to wholesale dealers with a discount. However, the Department argued that the certificate provided by the manufacturer indicated a gross FOB price to the dealer, not the net price to wholesale dealers. The Department contended that using the invoice price for assessment was appropriate in this case. After considering the arguments from both sides, the Tribunal agreed with the Department, stating that the manufacturer's price could not be accepted as the basis for valuation. The Tribunal found that the Department correctly used the invoice price for assessment purposes, as the manufacturer's certificate did not provide the net price to wholesale dealers. Therefore, the Tribunal upheld the lower appellate authority's decision, rejecting the appeal.
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