TMI Blog2003 (9) TMI 229X X X X Extracts X X X X X X X X Extracts X X X X ..... The appellants were required to have obtained a specific licence in respect of second-hand capital goods which are more than 10 years old. As the same is a restricted item as per Para 5.3 of EXIM Policy 1997-02 read with Para 5.4 of Handbook of Procedures, the value declared by them in the invoices and in the Bills of Entry was not accepted by the department. The same was referred to the Chartered Engineer who revised the value to US $ 45,000. After department furnished some evidence, the value was reworked out to US $ 70,010 after allowing the maximum depreciation of 70% permissible as per guidelines issued by CBEC in respect of valuation of second-hand machinery. The material furnished was valued at DM 5,00,000 by M/s. Heidelberg India Lt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt. 9. The value of second-hand machinery is determined as per the guidelines issued by the CBEC, Government of India. The relevant instructions provide that the value of the second hand machinery is arrived at after allowing specified depreciation on the value of the machine in the year of manufacture. The maximum permissible depreciation is 70% as per these guidelines. The Heidelberg machine under import is of 1985 make and the value in the year of manufacture, as confirmed by the manufacturers, was DM 5,00,000 CIF (US $ 2,33,367). Since the machine is more than 7 years old, after allowing maximum depreciation of 70%, its value works out to US $ 70,010. The values assessed by Chartered Engineers in respect of other machines was accepted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s not been brought to the notice of the Hon'ble Tribunal. 11. The next question is regarding the acceptability or otherwise of the transaction value. Here the importer has declared US $ 22,247 as the value of the goods. Since these are second hand goods, no identical or similar goods would have been imported. The Chartered Engineer who examined the goods estimated the value of the goods at US $ 45,000 on the basis of his expertise and experience. The importer himself agreed to pay duty on this value indicating that the declared value was a manipulated value. On investigation, it was proved that the printing machine when new was valued DM 5,00,000. The importer was not able to substantiate the truth and accuracy of the declared value in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... umstances under which such import was made. Since the subject case is entirely different and pertain to valuation of second hand machinery, I do not find it appropriate to rely on the Case Law cited supra. 14. I find that all the machines are more than 10 years old requiring specific import licence as per Para 5.3 of the Export Import Policy. The importers stated that they were not in possession of a valid licence. In absence of import licence, I hold that the goods are liable to confiscation under Section 111(d) of the Customs Act, 1962. For having rendered the goods liable to confiscation, the importers attracted penal provisions under Section 112(a) of the Customs Act, 1962." 4. We have heard the ld. Counsel S. Murugappan and Shri A. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (79) E.L.T. 82. He submits that the Commissioner has himself imposed very less RF and penalty and the same is not required to be disturbed. Therefore, he submits that appellant did not challenge the Chartered Engineer's certificate enhancing the value by adopting depreciation method and therefore the Commissioner has rightly followed the ruling of the Apex Court and the Board's instructions which is binding on him. 7. On a careful consideration of the submissions, we notice that the Chartered Engineer has enhanced the value after applying the depreciation method in terms of Board's circular. The department furnished the price of the new machine and the depreciation method was worked out in terms of Board's circular. The Apex Court in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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