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TMI Blog2014 (3) TMI 383X X X X Extracts X X X X X X X X Extracts X X X X ..... d the Revenue wants to adopt, there has to be consistency. If the Revenue wants to adopt depreciation method, the same should be followed uniformly in respect of all the parts/components consisting of the machinery. They cannot pick and choose depreciation method in respect of some parts and adopt the Chartered Engineer’s assessed value in respect of some other parts/components merely because the assessed value is higher the one arrived at following the depreciation method. As the popular saying goes “one cannot have the cake and eat it too”. Rule 8(2)(ii) specifically prohibits a system which provides for the acceptance for customs purposes of the highest of the two alternative values - Therefore, we are of the view either the Department h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it of the provisionally assessed duty. The said goods were evaluated by SGS India and the price certified by them is US $ 46,54,770. On this basis, the declared value of all second-hand machinery for both the bills of entry came to US $ 46,59,512.86. The Asst. Commissioner accepted the declared value as there was only a minor difference between the values certified by the chartered engineer in Indonesia and evaluated by M/s. SGS and accordingly he finalized the bills of entry and the applicant paid the differential duty of Rs. 29,795. Consequent to finalization the appellant became eligible for refund of revenue deposit made at the time of provisional assessment amounting to Rs. 2,47,17,858/- which was ordered to be refunded, vide order dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is, the chartered engineer in Indonesia at the time of shipment and by M/s. SGS India after the import as directed by the Customs authorities. In the evaluation done by both these agencies, except for a minor difference the values match/tally. If that be so, the Revenue cannot dispute the valuation done. (b) Since the original purchase prices of the imported machinery were not available, the price of new machinery has been taken as the basis for determination of value by both the agencies. From this price, the price of the used machinery has been arrived (termed as sound value) at by taking into account the usage, the current condition of the machinery and its expected balance life, in respect of each major item comprising the machin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the provisions of Rule 8(2)(ii) and 8(2)(iv). The decision of this Tribunal in the case of ZMS Tools Pvt. Ltd. [2002 (142) E.L.T. 87] is also relied upon wherein it was held that two yardsticks for two sets of machineries for the purpose of valuation cannot be adopted and the same is bad in law. Accordingly he prays for allowing the appeal. 5. The ld. Deputy Commissioner (AR) appearing for the Revenue re-iterates the findings given by the lower appellate authority. He submits that the bar of adopting higher of the two values would apply only when two different methods based on Rules 5, 6 and 7, have been made use of for determination of value and not otherwise. Accordingly he prays for upholding the impugned order. 6. We have caref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... two alternative values. The ratio of the decisions in the cases of Debabrata Ghosh and ZMS Tools Pvt. Ltd. (cited supra) also lay down that two different yardsticks cannot be adopted for determination of value of the two sets of machineries. 6.3 Therefore, we are of the view either the Department has to accept the declared value of the machinery as certified by the Chartered Engineer (subject to minor modifications, if any required) or follow the depreciation method, by applying the same uniformly and consistently in respect of all the parts/components/sub-assemblies of the machinery under import and decide which of those two values they want to adopt. 6.4 In view of the legal and factual position as discussed above, we set aside the im ..... X X X X Extracts X X X X X X X X Extracts X X X X
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