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TMI Blog2004 (11) TMI 199X X X X Extracts X X X X X X X X Extracts X X X X ..... shop in CKD conditions from their principals M/s. Daimler Benz, Germany and sought its clearance declaring that they are related to the supplier. The value declared was Rs. 2,17,83,331/-. Under Rule 4(2) of Customs (Valuation) Rules transaction value shall be accepted provided that the buyer and the seller are not related or when the buyer and seller are related the transaction value is acceptable for customs purposes under the provisions of such Rule (3). The original adjudicating authority rejected the transaction value and determined it under Rule 8 of Valuation Rules. While doing so he applied the method of valuation of second-hand machinery prescribed by the Government in its Circular No. F. 403/124/86-Cus. VI, dated 19-11-1987. The c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase the lower authorities accepted other conclusions in the said certificate except the fair value of the machine indicated therein; that in the case of Eicher Tractors Ltd. v. Commissioner of Customs, Mumbai [2000 (122) E.L.T. 321 (S.C.)] the Apex Court held that transaction value under Rule 4 can be rejected only when the conditions stated therein are not satisfied; that in the case of Tolin Rubbers Pvt. Ltd. v. Commissioner of Customs, Cochin [2004 (163) E.L.T. 289 (S.C.)] the Apex Court held that valuation of second-hand machinery under Rule 8 is not permissible without first ruling out transaction value provided in Rule 4 of Customs (Valuation) Rules. 6. The ld. SDR supported the findings of the Commissioner. 7. Heard both sides an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lue of identical or similar goods. Provided etc." We observe that the appellant except saying that the relationship has not influenced the price despite the relationship between the buyer and seller has not adduced any evidence required in (3) (b) quoted above in support of his contention that the declared value has to be accepted. We appreciate that it is well high impossible for him to do so for the simple reasons that the same type of machines may not have been bought or sold and even they are bought and sold the Department can easily refute that fact by saying that no two second-hand machineries are identical or similar. 10. The lower adjudicating authority gave two reasons as to why the circumstances of the sale are such that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g to the decision of the Apex Court in Tolin Rubbers Pvt. Ltd. relied upon by the appellant we observe that the Hon'ble Supreme Court rightly observed that resorting to depreciation method (best judgment method under Rule 8) without adverting to Rule 4(2) is not permissible. The authorities below adverted to Rule 4(2) and then proceeded to value the goods under Rule 8 in the absence of any evidence tendered by the importer as per sub-rule 3(b) to Rule 4 of Valuation Rules. The appellant also relied upon in Eicher Tractors Ltd. case. We observe that the ratio laid down there does not advance the appellants' case. 13. In the case of Gajra Bevel Gears v. Commissioner of Customs, Bombay [2000 (115) E.L.T. 612 (S.C.)] the Apex Court approved t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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