9911796707
TMI Blog1997 (3) TMI 286X X X X Extracts X X X X X X X X Extracts X X X X ..... er authority has observed as under :- On going through the facts and circumstances of the case, I find that there is no disputes that the car was registered in July, 1984 and it was shipped to India in August, 1992. The original authority has correctly granted 46% depreciation for the period July, 1984 to June, 1988. As regards the additional depreciation I am not able to agree with the contention of the appellant that the car is entitled to 70% depreciation for the mere fact that the car is more than 8 years old. On the other hand the depreciation for the period in excess of 4 years has to be determined on the basis of its actual condition. I find that the original authority who inspected the car has merely stated that considering the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out for any reduction in the value. 4. At this stage, the learned Consultant has produced before us instructions issued by Vadodara Collectorate for the purpose of valuation of second-hand cars. This Circular is reproduced below for convenience of reference :- Depreciation to be allowed for used motor vehicles imported into India - Instructions The question of prescribing a fixed scale of depreciation to be allowed for valuation of imported second-hand motor vehicles has been under consideration of the Board. This was considered necessary so as to avoid disputes in the valuation of imported second-hand motor vehicles and subsequent delays in their clearance. 2. As per the existing Instructions, the scale of depreciation for old and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n a sliding scale up to a limit of 70% and, therefore, the appellants on that basis should have been allowed for the depreciation. 5. We have considered the pleas made by both sides. We observe in terms of Section 14 of the Customs Act read with Valuation Rules, the value of the imported goods has to be fixed. In the case of the second-hand cars which have been in the possession of the appellants, it is possible that such value cannot be straight away fixed and various parameters, one of them being the condition of the car have to be considered before fixing the value. There are also international bulletins which are issued indicating the price of the second-hand cars. As a practical measure, the Department has worked out a method of arri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nefit of this basis. We find in fairness, the appellants plea requires consideration. As it is, two different units of second-hand machinery may not be identical, but for purpose of Section 14, a method has to be evolved to ensure that the price as adopted is as near to what is envisaged under Section 14 of the Customs Act. If the Department is adopting a particular method in other cases and which is acceptable for the purpose of fixing of the value under Section 14, there is no reason why the same method could not be applied in the case of the appellants. While fixing the value, no doubt the authorities will consider various other related factors also so that the price fixed in as per Section 14 of Customs Act, 1962. 7. In the facts of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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