9911796707
TMI Blog1986 (5) TMI 172X X X X Extracts X X X X X X X X Extracts X X X X ..... achkie the year of manufacture being 1967. The Assistant Collector did not accept the invoiced value of 19,600.00 cif and fixed the price of the goods under Rule 8 of the Customs Valuation Rules 1963. It was noticed by the Customs authorities that the same appellants had imported similar second hand machines with the year of manufacture 1968 some time later for 40,000 cif. The Assistant Collector on the basis of the prices of the new machines at the time of manufacture and that of the new machines in 1980 when the quotation for the import of machines was obtained and after giving an allowance for depreciation at the rate of 6 % and also appreciation of value due to general price increase between 1967 and 1980, fixed the f.o.b. value of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Collector has not given any findings in this regard. They have further pleaded that no addition should have been made towards freight and insurance as these elements are included in the invoice price. The appellants have requested that the case may be decided without giving them any hearing on the basis of the pleadings made in the appeal memorandum. The matter was therefore taken up for decision in the light of the above. 5. The learned SDR for the Department stated that he adopts the reasoning as contained in the order of the adjudicating authority and in the impugned order. 6. The points that arise for our consideration are : (i) whether the value as shown in the invoice can be accepted for the purpose of assessment and whether the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consideration the price of the goods at the time of manufacture and also that at the time of import and has allowed necessary depreciation after making adjustments in the price of the machines due to the general price rise in the value of the goods over the years. The depreciation allowed was 6 %, the price rise was taken as 1/3rd of the total price rise between 1970 and 1980 of that in the case of prices of the new machines. No basis for the depreciation of 6 % and for taking the appreciation in the value of the second-hand machines as one-third of that of the new machinery due to general price rise has been spelt out in the order of the lower authorities. However, we find the result of this exercise was that the price of the goods as wor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terms of the Appellate Collector s order is lower than what might have been fixed in case Rule 3 read with Rule 4 of the Customs Valuation Rules 1963 had been resorted to. We, therefore, find no reason to accede the appellants plea for accepting the invoice value for purpose of assessment. 9. The appellants second plea that no addition should have been made towards freight and insurance for arriving at assessable value inasmuch as their invoice price is cif price and the freight has been prepaid by the suppliers. We observe that since the price shown in the invoice has not been adopted as the basis of valuation under Section 14(1) but it is the export price of the new machines prevailing at the time of manufacture which has formed the ba ..... X X X X Extracts X X X X X X X X Extracts X X X X
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