TMI Blog2002 (6) TMI 134X X X X Extracts X X X X X X X X Extracts X X X X ..... testing equipment (Stem ¾" tester baskets, stem tester teeth rods, test shaker, sieve tester) covered by Special Import licence for a CIF value of USD 49,796.73. Based on the Chartered Engineer's certificate the department ignored the declared value and the value was determined by allowing depreciation of 33% on the estimated CIF value of equivalent to new machinery in the international market at USD 10500 and the assessable value was determined at USD 73,770.68 as against the declared value of USD 49,796.73 by the importers. After considering the submissions made by the importers before the Commissioner (Appeals), he has held that the lower authority has neither examined the acceptability or otherwise of the transaction value furnished b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he price. In this case he inspected the machine in unassembled condition. (c) The Commissioner (Appeals) failed to appreciate the above deficiencies in the Certificate. (d) The Commissioner (Appeals) should have gone into the defective manner of the certification of the machine, though it was clearly brought out in the order in original. (e) The depreciation method on the basis of the Board's order in SO No. 449/87, 6/88, 20.88 etc. on the basis of the CE's certificate is an age old practice in the Customs, which has to be followed. Chartered Engineer's Certificate is accepted as the evidence for purpose of determination of value. Therefore, the Commissioner (A) has erred in holding that the procedure manner of arriving the valu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Revenue cannot rely on one part of the professional opinion and discard the other part without reasons. (b) The Commissioner (Appeals) has held that for arriving at the correct value of the imported goods, one has to necessarily discard the transaction value first and only then proceed to the other rules, ie. Residual method for the purpose of arriving at the correct value of the machines imported. (c) For the purpose of valuation of any machinery, the transaction value has to be rejected first in terms of Rule 4 of CVR 1988 and only in case, there are proper evidence for negation of transaction value, one can go to the residual method i.e. Rule 8 of the CVR 1988. (d) The Commissioner (Appeals) has arrived at the finding by r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal of the Revenue. 5. We have carefully considered the rival submissions and gone through the case records. We observe that in this case a competent Chartered Engineer has furnished a certificate wherein he has certified that the machinery is in good condition and the expected residual life was of at least ten years. The estimated CIF value of the equivalent new machinery in the international market was certified as USD 105,000. He has also certified that the prices asked for the impugned machinery which is USD 45,000/- i.e. 40% to 50% of the new machinery, are reasonable and fair compared with the international market. The CIF value declared by the importer was USD 49,796.93 which is more than the comparable international price. We f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etermined by proceeding sequentially through Rules 5 to 8 of the CVR 1988. We observe that the Respondents-importers have pleaded that the lower authority has nowhere in the order-in-original discarded the transaction value nor has raised any doubt regarding the year of manufacture or any other fact relating to the import made by them. As against this plea, we find that the original authority on page 12 of the order-in-original has recorded a finding that "in view of an appreciable difference in the deduced value arrived at by the depreciation method and the declared invoice price, the later needs to be discarded and the acceptance of the same is ruled out as transaction value under Rule 4 of Customs Valuation Rules". Further, the same auth ..... X X X X Extracts X X X X X X X X Extracts X X X X
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