1999 (6) TMI 169 - AT - Customs

Summary

Issues:
Import of car under transfer of residence, valuation for assessment, claim for trade discount, VAT, and road tax, application of transfer of residence rule.

Analysis:
1. Import of Car under Transfer of Residence:
The case involved the import of a car under the transfer of residence. The appellant declared the FOB price of the car as Rs. 18,35,260 in the Bill of Entry. The Department accepted this value and assessed the car to duty after allowing for depreciation due to the car's retention in a foreign country and its use. The appellant claimed that the car was a replacement car acquired during an extended stay abroad, but the Department did not consider this aspect in granting the benefits of transfer of residence rules.

2. Valuation for Assessment:
The appellant argued that the Department should have considered the Parkar's Price Catalogue for assessment, allowing for a trade discount of 15%, VAT, and road license. However, the Department maintained that the declared value in the Bill of Entry was the correct transaction value, as the appellant did not claim any additional discounts or taxes. The Tribunal agreed with the Department, stating that the declared value was in conformity with the Price Catalogue, and there was no legal flaw in accepting it for assessment.

3. Claim for Trade Discount, VAT, and Road Tax:
The appellant's request for a trade discount of 15%, VAT, and road tax deductions was not considered valid as these claims were not made in the Bill of Entry. Therefore, the Tribunal ruled that there was no basis for separately considering these items in the assessment.

4. Application of Transfer of Residence Rule:
Regarding the application of the transfer of residence rule, the Tribunal noted that the car was exchanged and used for less than one year, contrary to the requirement of continuous use for at least one year under the rule. As a result, the appellant was denied the benefit of the transfer of residence rule in relation to the import and assessment of the car.

5. Conclusion:
After considering the arguments and evidence presented, the Tribunal found no legal defects in the Department's valuation and assessment process. The Tribunal upheld the impugned order, rejecting the appeal based on the findings related to the declared value, absence of additional claims in the Bill of Entry, and the failure to meet the criteria for the transfer of residence rule.