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TMI Blog2004 (3) TMI 691X X X X Extracts X X X X X X X X Extracts X X X X ..... ent. [Order per : Moheb Ali M., Member (T)]. The appeal arose out of the order of the Commissioner (A). In the impugned order the Commissioner confirmed the lower authority s order determining the value of the imported machine at D.M. 4,00,000/- f.o.b. Hence the appeal. 2. Briefly the facts are that the Appellants imported one second hand unused floor type horizontal boring machines wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as D.M. 4,00,000/-. The grounds for rejection are that it is a distress sale and so the price paid are payable is not in the course of normal international trade. The second ground is that the machine under import is a brand new one and not second hand as declared. A second hand machine means one that is used and not an unused machine even though the machine has changed hands from one to another. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... machine is a 1993 make. Any machine which was manufactured in 1993 and was lying in a godown for 4 years has to be considered as a second hand machine only. He further argued that the department has erred in determining the value as D.M. 4,00,000/- on the basis of an inter office memo. Such a memo cannot be a basis for rejecting the transaction value. Further the department is wrong in concluding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the conditions for rejection of value under Rule 4 of the Valuation Rules exist in this case. The Apex Court in the case of Eicher Tractors Ltd. [2000 (122) E.L.T. 321] held that transaction value can be rejected only when the provisions of Rule 4 are satisfied. The ratio of this judgment applies in the present case. It is not important whether the machine under import is used or not. The pric ..... X X X X Extracts X X X X X X X X Extracts X X X X
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