9911796707
TMI Blog1996 (12) TMI 179X X X X Extracts X X X X X X X X Extracts X X X X ..... he chartered engineer s certificate wherein at Para 6 he valued the same as US $ 115,000, the price which was declared by the appellants in the BE for which they were invoiced also is the same. The Collector in this regard did not accept the transaction value as claimed in view of the fact that machine is a new one except for the fact that very soaringly it was used for administrative purpose as per the chartered engineer s certificate. However, the examination also revealed that it is a new machine and there were no signs of any use. The value of a new machine as per the recitals in the chartered engineer s certificate is US $ 170,000. In the impugned order, the Collector having brush aside the invoice value proceeded to determine the valu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the current exchange rate to Rs. 44.37 lacs. Considering the above factors he fixed the value of each of the machines in question to Rs. 30 lacs on ad hoc basis and determined the total value of the three machines at Rs. 90 lacs in terms of Rule 7 8 of the Customs Valuation Rules, 1988. 2. The learned Consultant in this behalf contended before us that the adjudicating authority had accepted the certificate of the chartered engineer. It is therefore contended before us that the price of the new machine was US $ 170,000 and in Para 6 of the chartered engineer s certificate, he had definitely stated that the selling price of the machines in question would come to US $ 115,000. He stated that the depreciation also sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ficate which contained all the facts regarding the usage of the machines as well as the year of manufacture and also the condition of the machines. He therefore pointed out that the appellants declaration of the same as a second hand machine is based on bona fide belief of the appellant that it was a used machine even though for demonstration purposes and that year of make was 1991. Therefore, he pointed out that there is no warrant for fixation of the same on the ground of this mis-declaration and the levy of penalty on the appellant is also not warranted in the facts and circumstance to the case. 3. The learned SDR submitted that the invoice price cannot be accepted in view of the fact that the machines imported is found to be new. In t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the adjudicating authority. The adjudicating authority also did not dispute the findings given in the chartered engineer s certificate. For the sake of reference, we reproduce the chartered engineer s certificate as under :- The technology of these machines represent the state of the art in Draw Frames. Manufacturer still manufactures and exports such machines. Value of the inspected equipment in 1991 when purchased new was $ 170,000.00 US. Total for the three machines." It is, therefore, clear that the chartered engineer s certificate clearly shows the value of the machines, the year of make and which factors have been relied upon in the adjudication order itself. As far as the description of the goods are concerned, it cannot be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... asis for the same. 6. Another important factor which is available in this case, as could be seen from the impugned order itself is that Model D-600 is in circulation currently than DX-500. It therefore goes to show that this Model DX-500 is not up-to-date and that it has become outdated. This is another relevant factor which should be taken into consideration. We do not accept the rationale of the decision of the adjudicating authority for fixing the price at Rs. 30 lacs per unit, as it is not based on any criteria. 7. The next question for consideration is if this price is not accepted then what will be the price that may be accepted as far as these machines are concerned. In this connection, we notice that the chartered engineer s cer ..... X X X X Extracts X X X X X X X X Extracts X X X X
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