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2012 (11) TMI 82 - AT - CustomsUndervaluation – import of old and used machinery – enhancement of value – Held that:- the depreciated value as certified by Chartered Engineer, U.K. is only 7.25% of the invoice value in 1970, whereas he certified that the residual life of the machine is more than 15 years subject to proper maintenance and procedure being followed and also that the spares presented were either new or in good enough condition to represent 80% of the normal life expectancy and that the technology involved equivalent was consistent with present day practice which has not radically changed. It does not make any economic sense to import a machine which has only 7.25% as residual value as declared by importer. It is to be noted that the invoice produced is not of any manufacturer or any person who was actually using machine earlier and is of a scrap dealer in U.K. Reliance upon the report of Chartered Engineer - held that:- The first two are of facts and the third is an opinion. So there is no infirmity in accepting the facts and rejecting the opinion. Old and used machinery is inherently prone to undervaluation - In fact from the Government of India has amended the import policy to the effect that old and machinery having residual value less than 80% of the original value is not allowed for import. Adjudicating authority has followed the valuation method prescribed by Board for arriving at reasonable price and at the ‘ time of assessment the respondent accepted the price suggested by Revenue - Decided in favor of revenue.
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