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TMI Blog1990 (2) TMI 155X X X X Extracts X X X X X X X X Extracts X X X X ..... used Rolls Royce Silver Spur Car on 12th June, 1989 from M/s. Car Exchange (Guernsey) Ltd., Lower Colborne Road, St. Peter Port, Guernsey for 60,000.00. The said car was imported into India and the appellant filed a bill of entry No. 89/6748, dated 4th August, 1989 for the clearance of the car, and in support of the same had produced invoice from one M/s. Jack Barclay Ltd. wherein it was stated that the recommended price of the car was 73,081.00 and the net export price was 57,461.06 and the revenue authorities had obtained information from England to the effect that the recommended basic price of the car in question was 69,985.00 excluding all taxes that being the net export value and after allowing depreciation of 16% the price ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 00. He has pleaded that in the bill of entry the appellant had given the correct description and had declared the correct value. In support of his argument, he has referred to a judgment of the Tribunal in the case of Prem Kumar v. Collector of Customs reported in 1989 (40) E.L.T. 340 where the Tribunal had accepted the value of the car declared by the appellant. The appellant was not a businessman. Shri Ganesan has pleaded that the appellant had declared the value at Rs. 15,33,586.00, whereas the revenue has assessed the same at Rs. 15,91,915.00 and has referred to the bill of entry which appears on page 29 of the paper book. He has referred to the price list which appears on page 36 of the paper book. He has also referred to page 32 which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has also pleaded that value should be reduced by 15% as a trade discount in view of the earlier judgments of the Tribunal. During the course of arguments, Shri Ganesan had filed a calculation sheet on the basis of World Car Catalogue Price of Rolls Royce Silver Spur. 6. We have heard both the sides and have gone through the facts and circumstances of the case. The facts are not disputed. The appellant had imported Rolls Royce Silver Spur August, 1988 model car. The value of the car has to be taken in terms of Section 14(l)(a) of the Customs Act, 1962. Section 14(l)(a) of the Customs Act, 1962 is reproduced below :- 14. Valuation of goods for purposes of assessment - (1) For the purposes of the [Customs Tariff Act, 1975 (5 of 1975 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... el less 15% discount. Para No. 3 from the said judgment is reproduced below :- 3. The appellant contended before us that the invoice price was not a discounted price. The learned representative of the department maintained, on the basis of his experience in the Customs department, that the invoice price to the export passengers (like the present appellant) was a discounted price. He, therefore, opposed the grant of any further discount to the appellant. However, he had no objection to the car being assessed at the manufacturer s price to wholesale dealers in the course of international trade. But there could be no further 15% discount on the already net wholesale price. 15% discount was given on the retailer s list price. We have had t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... E.L.T. 474. Accordingly, we direct the revenue authorities to assess the car on the basis of the World Car Catalogue Price of the same model less 15% discount. The appellant had declared the value as per the value of the second-hand car invoice less 4% depreciation. This reflects the innocence of the appellants. There appears to be complete absence of the element of mens rea. We do not find any justification in the levy of penalty. The order imposing a penalty of Rs. 1,00,000.00 (Rs. one lakh only) is quashed. With these observations, the appeal is allowed. We further order that if the appellant had imported any accessory, the value of the same should be added for the purposes of assessable value. The revenue authorities are directed to gi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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