2015 (10) TMI 2390

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..... ical Collaboration Agreement with BBA Group PLC, a British Company, and SCANDURA INC., a U.S. base Company, second hand machinery was imported at declared price of # 65000 FOB, U.K. Port. Although the appellant produced a Chartered Engineers Certificate dt. 10.11.1993, RBI approval and purchase order showing the stated price, the declared value was enhanced by Customs on the basis of estimated value given by the Chartered Engineer as at the time of original purchase minus the permissible depreciation. The matter went through two rounds of litigation at the level of Commissioner (Appeals). Thereafter the Tribunal remanded the matter to the original authority, that is Assistant Commissioner, for passing a well reasoned order by considering j .....

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..... ssions made by both sides. Machines of specialized nature with no specific common standards will have varying values. Thus, admittedly, prices of contemporaneous imports were not available. The course for Revenue to find the correct value was either to accept the transaction value, or if transaction value was not acceptable for justified reasons, the value could be determined under the Residual Rule 8 of Customs Valuation Rules. The Commissioner adopted the latter course on the basis of the Chartered Engineers certificate submitted by the appellant. The relevant portion of the certificate reads as : "Value of the capital goods at the time of its original purchase based on purchase price. Not applicable  Where the original purcha .....

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..... rtificate indicating the value of the machines when manufactured. The Hon'ble Apex Court upheld the Tribunal judgment on this basis stating that scaling down the manufactured price by giving depreciation, does not appear to be an arbitrary method for ascertaining the value. However, in the present case, we find that the Chartered Engineer has not given the price at the time of manufacture. On the other hand, he has certified the transaction price of #65000 to be very reasonable. Thus, the case of Gajra Bevel Gears is distinguishable. On the other hand, the reliance placed by the appellant on the case of Tolin Rubbers Pvt. Ltd. is more appropriate. Reliance on only one part of the Chartered Engineers certificate and ignoring the other part .....

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