TMI Blog2009 (8) TMI 1049X X X X Extracts X X X X X X X X Extracts X X X X ..... as re-examined by him on 23-4-2003 and he re-determined the value of the goods as Rs. 37,30,000/- vide his report dated 25-4-2003. While giving fresh report he has also spelt out the reasons for the enhancement by stating that the initial valuation of the machinery was carried out with the machineries inside the container. He has also recorded that despite his repeated request, the machineries were not taken out from the container for proper examination. He also reported that the machines were used for a lesser number of years and hence the value required enhancement. 3. The re-determined value was also accepted by the appellants. The appellants also admitted that they had to pay Rs. 37,00,000/- partly through banking channels and partly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed goods could not be examined properly the first time because the impugned machines were still within the container and they could not be destuffed for proper examination. 7. After hearing both sides, we find that the adjudicating Commissioner has passed a detailed order after going through the records of the case and the submissions made by the appellants. We further find that in the case of Gajra Bevel Gears (supra), the Hon ble Supreme Court has held that the value of the second hand machinery can be determined by taking the value of new machinery and scaling down the price by giving depreciation. The Board s Circular dated 12-2-2008 also states as follows : It may thus be seen from the judicial decisions that, before re-determina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atisfied, he may accept the declared value. But, if he still has reasonable doubt about the truth or accuracy of the declared value, he can reject the declared value under Rule 12 and proceed to re -determine the value under Rule 9 by following the Board s Circular No. F.493/124/86-Cus., dated 19-11-1987 in respect of the depreciation to be extended to such second hand machinery. From the above it emerges that if declared value of the second hand machinery is found to be much below the value arrived at by the depreciation method on the basis of the certified price of the new machinery in the year of its manufacture, the assessing officer may have a reason to doubt the truth or accuracy of the declared value. Under such circumstance, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in its year of manufacture, the scale of depreciation should be calculated on the basis of the price of the new machinery as declared in the Chartered Engineer s certificate without going into the question as to whether this price pertains to the current CIF price or the CIF price in the year of its manufacture. The learned Advocate has been insisting that depreciation should be allowed from the price determined by the Chartered Engineer in the present case. His arguments are based on the Board s circular dated 14-1-88. We are of the view that such argument is without any basis. The Board s Circulars refer to the price of the new machinery as in the year of its manufacture and current CIF value of the new machinery if purchased now. Neithe ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
