9911796707
TMI Blog1996 (2) TMI 458X X X X Extracts X X X X X X X X Extracts X X X X ..... rs of West Germany. The Assistant Collector did not accept the transaction value in regard to these six machines and determined the value by the depreciation method, relying on the long standing Custom House practice and certain letters of Ministry of Finance, Department of Revenue. The Collector (Appeals) sustained the order. Hence this appeal by the importer. 2. Learned Counsel for the appellant submitted that neither the original authority nor the appellate authority applied their minds to the acceptability or otherwise of the transaction value of six machines but proceeded arbitrarily to determine the value under Rule 8 of the Customs Valuation Rules, 1988, feeling bound to do so by a misreading of the letters of the Ministry. Counsel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as per depreciation method. 3. We would like to clarify at the outset about the letters of Ministry which have been placed before us. They are dated 19-11-1987 and 4-1-1988. We do not understand these letters as laying down a rigid principle that in all cases second-hand machinery imported must necessarily be valued adopting the depreciation method. The letters in fact only provide guidelines in regard to the depreciation to be allowed, wherever depreciation method is adopted. In every case, as pointed out in Collector of Customs v. Blue Star Industries reported in 1996 (81) E.L.T. 287, it is for the customs authorities to find out whether there is international trade in the particular kind of goods imported and the price of such goods s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unsel for the appellant whether in these circumstances remand would be desirable. Learned Counsel categorically stated remand is not desirable and requested that the Tribunal may arrive at a proper assessable value in the light of the materials on record. 6. The Ministry of Finance has issued guidelines as to how the depreciation method is to be worked out. The broad framework of the formula is that in each quarter of first year depreciation could be allowed at 4%, in each quarter of the second year depreciation could be allowed at 3% and in each of succeeding years depreciation could be allowed at 2% per quarter, however subject to the condition that the total depreciation allowed cannot exceed 70%. Depreciation method is certainly a rea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... peculiar facts of the case, we are inclined to hold that the difference in values in regard to Items 1, 3 and 4 is not such as to throw any serious doubt on the genuineness of the transaction values. Therefore, in regard to items shown in Sl. No. 1, 3 and 4 in Paragraph 8 of Collector s order, it would be reasonable to accept the transaction values. 8. In the result, we set aside the impugned order and direct the jurisdictional Assistant Collector to determine the duty leviable and the differential duty afresh on the basis of the above finding, namely, that the transaction value is to be accepted in regard to machines shown as Items 1, 3 and 4 in Paragraph 8 of the order of the Collector (Appeals) and the value determined already on the b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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