TMI Blog2012 (11) TMI 82X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duty on enhanced value and preferred an appeal before the Commissioner of Customs (Appeals). The Commissioner (Appeals) observed that the adjudicating authority has not passed a speaking order in the matter and therefore the matter was remanded to the adjudicating authority to pass a speaking order. Thereafter, the adjudicating authority issued a speaking order. The adjudicating authority explained the reason for loading the assessable value as under :- In this case, the subject goods are old and used. The supplier of the goods i.e. M/s. Metro Alloys and Residues Limited, U.K. are not the manufacturer of the goods and from their invoice raised on the importer appear to be metal merchants dealing in non ferrous nickel alloys-metals and re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fair assumption that normal sale value of goods could not have been so low. The screening of documents also revealed that the very basic indicator towards the cost of machine i.e. size of machine, gross weight of machine (73.080 MT), the characteristic as continuous casting line comprising of a machine furnace, its usage that of usage under high temperature, pressure and continuous wear and tear and a significantly higher value in the year 1970 indicted that it has to be made of high quality components. Accordingly, it could be reasonably concluded that the value of machine should have been significantly higher than what was declared. Accordingly the value declared by the importer was rejected under Rule 10A of the Valuation Rules, 1988 an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er (Appeals) allowed the appeal of the Respondents on the following grounds :- It is also not the case of the department that there was any special relationship between the importer and the supplier and that the former has paid anything extra over and above the transacted value. There is no charge of mis-declaration of goods. In fact it has been accepted by the department that the impugned goods were second hand machinery and accepted the findings of he Chartered Engineers to that effect. In case of any charge of mis-declaration the burden is on the department as held by Hon ble Supreme Court in the case of Union of India v. Garware Nylons 1996 (87) E.L.T. 12 (S.C.). Hon ble Supreme Court in the case of Tolin Rubbers Pvt. Ltd. v. Com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f manufacture and the depreciated value rather than accepting the date of manufacture of the machine and not the depreciated value. It is his further argument that Revenue has not been able to prove any extra remittance other than what is shown in the invoice produced. 5. In the present case it is to be taken note of 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 con ..... X X X X Extracts X X X X X X X X Extracts X X X X
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