TMI Blog1995 (3) TMI 202X X X X Extracts X X X X X X X X Extracts X X X X ..... e machine was too low and having regard to these similar machines imported by the importers proposed that the value should be Rs. 3,75,000/-, that the provisions of Open General Licence was also proposed to be denied to the machine on the ground that it was more than 10 years old. A show cause notice was issued to the Press. 2. After hearing the appellant, the Additional Collector of Customs held that the assessable value of the machine should be enhanced to Rs. 3,00,000/- but extended the benefit of the O.G.L. This appeal is against that order enhancing the value. 3. We have heard Shri N.C. Sogani, Consultant for the appellant and Shri A.K. Singhal, JDR for the Collector. 4. Shri Sogani s argument is that the show cause notice does n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 1985 (21) E.L.T. 140 and 1994 (72) E.L.T. 124. 5. Shri A.K. Singhal, ld. JDR supports the order of Addl. Collector claiming that it was the best judgment of his assessment. 6. The appellant s claim that the comparison cannot be made between two second-hand machines of different years of manufacture and coming from different countries, and between two machines of different models or specifications, for the purpose of valuation has to be admitted. Comparison between the four colour machine imported by the appellant and two colour machines imported by M/s. Hansraj Gupta and Sons is not fair. As the Consultant points out the demand for two colour machines might have been greater than for four colour machines. The show cause notice does no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ew machines in 1973. Trying to arrive at the reduced value by taking the value of the new machines given in the Chartered Engineer s Certificate for machines imported by India Offset Press could not be correct, as the value is for a machine made in different year and approved from different country. Even in the absence of this, the Addl. Collector s Order is not sustainable as we have indicated above. In the circumstances, we allow the appeal. Consequential relief if any, will flow to the appellant. 8. [Order per : S.K. Bhatnagar, Vice President]. - With due respects to Hon ble Member (T) my views and orders are as follows. 9. I observe that in this case the appellants have been charged with undervaluation of one unit Solna 425 of 1973 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... applicant s machine it was 1973 but the difference gets virtually wiped out (and the latter, indeed steals the march) as the appellant s machine has been re-conditioned.......to Manufacturer s Original specifications and as already noted, its expected residual life was much more (being 10-12 years as compared to 5-10 years of the other). (v) Again, while it is true that one machine has been imported from Sweden and another from England but the correspondence produed shows that the machine in question has not been directly shipped from Sweden but after transhipment. This is evident from the fact that the invoice No. 18011, dated 3-1-1983 provides for transhipment and makes allowance for the same. Therefore, both being .........Swedish ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her we can do a sort of cross-checking by another route i.e. by way of a comparison between Solna 225 two colour offset machine and the imported machine. In this case the year of manufacture is the same but the prices of two colour offset was found to be Rs. 3,75,000/- SEK whereas that of the four colour was Rs. 8,50,000/- SEK i.e. the cost of four colour machine was slightly more than double that of two colour machine. It is significant here that the year of manufacture is also the same and the manufacturer and the country of origin are the same. Therefore, by this route also the above calculation would be justified. 16. Learned Counsel has referred to Board s Circular No. 493/124/86-Cus., dated 19-11-1987 but it also does not help the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for such overvaluation (indeed if the calculations of the Learned Counsel were accepted the table would get turned in the case of undervaluation, it would become a case of overvaluation). It is also interesting to note in this connection that whereas the certificate of 1975 machine gives CIF value of equivalent new machine as 3,60,000/- the certificate of 1973 make in question does not indicate any such figure or for that matter the correct price of the machine in the country of export; And the so-called price list had been rejected by the Learned Additional Collector as its authenticity had not been proved. Nevertheless it stands to reason that there was one room for bargaining in case of second-hand machine but while accepting this ..... X X X X Extracts X X X X X X X X Extracts X X X X
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