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Issues: Valuation of imported Toyota Land Cruiser Prado based on transaction value versus Parkers Guide price
The judgment concerns the dispute over the valuation of a Toyota Land Cruiser Prado imported by the appellant. The appellant purchased the vehicle second hand from a dealer in Dubai and sought assessment of customs duty based on the transaction value. However, the customs authorities assessed the car at a higher value based on the price obtained from the Parkers Guide, an internet source. The appellant argued that the valuation adopted was contrary to the provisions of Section 14 of the Customs Act and Customs Valuation Rules. He contended that the transaction value should be used for assessment, emphasizing that the price obtained from the manufacturer, Toyota, was in line with his purchase price in Dubai. The appellant also cited a previous tribunal decision and a Supreme Court ruling to support his case that the transaction value should be the basis for assessment. The tribunal analyzed the arguments presented and found that the appellant's transaction value aligned closely with the value derived from the manufacturer's price. The assessable value based on the purchase price was Rs. 4,98,520, while the value from the manufacturer's price was Rs. 5,11,969. This comparison indicated that the transaction value represented the normal price of the car in a commercial transaction. The tribunal emphasized that Section 14 of the Customs Act and Rule 3 of Customs Valuation Rules mandate that imported goods should be valued based on the transaction value unless affected by non-commercial considerations. As there was no evidence of such influences in this case, the tribunal agreed with the appellant's argument that the car should be assessed based on its transaction value. The tribunal also noted that the judgments in the cases of Eicher Tractors and Balbir Saluja supported the appellant's position. Consequently, the tribunal allowed the appeal, setting aside the impugned orders. It directed the customs authorities to assess the car based on its purchase price, collect the duty accordingly, and release the vehicle to the appellant promptly. This decision was based on the principle that the transaction value should be the primary factor in determining the customs duty for imported goods, in line with the relevant legal provisions and precedents cited during the proceedings.
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