Customs valuation of an imported vessel: reduced post-import price not accepted, and full pre-deposit was required.

In provisional customs valuation of an imported vessel under Section 14 of the Customs Act, the reduced post-import price was not accepted where the vessel was bought outright under the memorandum of agreement, the buyer waived inspection, and the purchase was on an as is where is basis. On that prima facie view, the original contractual price remained the relevant valuation basis and no complete waiver of pre-deposit was justified. The application for waiver of pre-deposit was therefore rejected, and the appellant was directed to deposit the entire duty within eight weeks, failing which the appeal would stand dismissed.

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Issues: Whether waiver of pre-deposit of the duty demand was warranted where the provisional assessment had been finalised by valuing the imported vessel at the original contractual price under Section 14 of the Customs Act, 1962 and rejecting the reduced post-import price.

Analysis: The application arose from a demand confirmed on the footing that the vessel had been purchased outright under the memorandum of agreement, the buyer had waived inspection, and the purchase was on an as is where is basis subject to the terms of that agreement. On that prima facie view, the reduced price was not required to be accepted for valuation purposes and no prima facie case for complete waiver of pre-deposit was made out.

Outcome: The request for waiver of pre-deposit was rejected and the appellant was directed to deposit the entire duty within eight weeks, failing which the appeal would stand dismissed.

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