9911796707
TMI Blog2001 (9) TMI 388X X X X Extracts X X X X X X X X Extracts X X X X ..... purchased a second hand Royce Car, Model Silver Seraph of 1998 make on 26-1-2001 from M/s. Michael Powles Limited, an authorised dealer of Rolls Royce. As per the relevant invoice dated 26-2-2001 the price of the car would come to £70,000. An amount of £600/- was paid towards freight. The appellant filed Bill of Entry dated 27-2-2001 for clearance of the aforesaid car. 3. The Customs authorities were not inclined to accept the value of the car as described by the invoice. Therefore, the appellant produced copy of the Parker's Guide to support the declared value. The Parker's Guide showed price of the car and the year of manufacture as £1,55,175 which was inclusive of VAT and other taxes but without any discount. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unless his case comes under the proviso to sub-rule (2) of Rule 4 of Customs Valuation Rules, 1988 the transaction value of the imported goods should have been taken as the price actually paid. Apart from stating that the invoice value is far too low in comparison, there is no mention in the order impugned that the proviso to sub-rule (2) of Rule 4 would be applicable in the case. Therefore, according to the appellant, the authority should have accepted the transaction value of the imported goods as the price actually paid by her and as reflected in the invoice. 6. On the other hand, the learned Departmental Representative would submit that in the light of the provisions contained under Section 14(1) of the Customs Act, 1962, it will ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nted under Section 46, or a shipping or bill of export, as the case may be, is presented under Section 50] (1A) Subject to the provisions of sub-section (1), the price referred to in that sub-section in respect of imported goods shall be determined in accordance with the rules made in this behalf." Rule 3 and relevant portion of Rule 4 with its provisos of Customs Valuation Rules, 1988 are quoted below :- "3. Determination of the method of valuation. - (i) the value of imported goods shall be the transaction value; (ii) if the value cannot be determined under the provisions of clause (i) above, the value shall be determined by proceeding sequentially through Rules 5 to 8 of these rules. 4. Transaction value. - (1) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 14, it is open to the authorities to fix the value of the goods by looking into the other data without reference to the statutory rules. A similar contention raised by the revenue was not found favour with the Supreme Court in Eicher Tractors Ltd. v. Commissioner of Customs, Mumbai, 2000 (122) E.L.T. 321 (S.C.). It was contended by the respondent Revenue that the principle of valuation of imported goods was to be found in Section 14(1) of the Act which provides for determination of the value on the basis of international sale price. The rules should have to be read subject to Section 14(1) of the Act and the use of the words "price payable" in Rule 4 meant market value of the goods in international trade. According to the respondent the wor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been cast on the authorities to accept the price actually paid or payable for the goods in respect of the goods under assessment as the transaction value. But the mandate is not invariable and is subject to certain exceptions specified in Rule 4(2)." It was then observed that the rules framed under Section 14(1A) are subject to the conditions in Section 14(1). Rule 4, in fact, is directly relatable to Section 14(1). Both Section 14(1) and Rule 4 provide that the price paid by an importer to the vendor in the ordinary course of commerce shall be taken to be the value in the absence of any of the special circumstances indicated in Section 14(1) and particularised in Rule 4(2). 'Payable' in the context of language of Rule 4(1) must, ther ..... X X X X Extracts X X X X X X X X Extracts X X X X
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