Home Case Index All Cases Customs Customs + AT Customs - 2014 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (3) TMI 383 - CESTAT MUMBAIValuation of goods - Enhancement of declared FOB value - Chartered Engineer’s certificate - Held that:- assessing officer has adopted the value declared by the appellant importer on the basis of the Chartered Engineer’s certificate with some minor modifications. The Board’s circulars prescribes arriving at the value on depreciation method based on the value of the new machinery - value of second-hand machine on the basis of Chartered Engineer’s certificate and scaling down the price of the machine by giving depreciation is not an arbitrary method for ascertaining the value. However, whichever method 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 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 – Matter remanded back - Decided in favour of assessee.
|