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TMI Blog2006 (5) TMI 261X X X X Extracts X X X X X X X X Extracts X X X X ..... nt. That and other disputes delayed the clearance of the car till 28th March, 2005. 4. The car was purchased by the Appellant at a price of 75,000 from a German party, namely M/s. Shone Fab Collection, Germany. The Deputy Commissioner rejected the sale price as basis for value on the ground that the supplier does not appear to be dealing in second-hand car . Therefore, value was determined going by the catalogue price after granting a depreciation of 38% from the catalogue prices. 5. The respondent challenged the above order of valuation before Commissioner (Appeals). The Commissioner allowed the appeal. He noted that the rejection of the transaction value was incorrect in as much as the finding that the supplier was not a dealer was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... depreciation allowed. It is being pointed out that the order of the Commissioner is illegal in as much as Section 14 of the Custom Act stipulates that value shall be with reference to price at the time of importation. The Learned SDR has emphasized that any depreciation after the importation of goods, for whatever reason, would be wholly illegal and cannot be allowed. 9. The Learned Council for the Appellant submits that the Commissioner was right in granting the higher depreciation. He has contended that the observations of the Commissioner on the factual aspects of the matter are entirely correct and sound, in as much as the car had suffered greatly in value during the long period of detention. He has also pointed out that the detent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e acceptance of purchase price of second-hand car for the purpose of valuation for custom duty. In these circumstances, we are not able to find any merit in the appeal of the Revenue on this ground. 11. Coming to the next ground, the Revenue is entirely right in its contention that value must be based on the price at time of import of the goods. This is specified in Section 14 on the Custom Act. Time of import and place of import are invariably the basis for tariff value, rate of duty and exchange rate. Therefore, the finding on depreciation is contrary to the basic statutory provisions in regard to a vide range of matters. The Revenue is, therefore, right in its contention that Commissioner is legally in error in holding that a higher de ..... X X X X Extracts X X X X X X X X Extracts X X X X
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