Depreciation on imported used cranes must be considered under the valuation circular, with fresh adjudication required.

Depreciation on imported used cranes had to be considered under the applicable Board circular governing valuation of used machinery, and the adjudicating authority could not reject that plea without proper examination of the appellants' other submissions. The declared value had been discarded on the basis of a chartered engineer's ascertainment, but the Tribunal found that the circular on depreciation was required to be followed. The impugned order was set aside and the matter remanded for fresh adjudication.

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Issues: Whether the appellants were entitled to depreciation on the value of the imported used cranes in terms of the Board circular and whether the matter required reconsideration by the adjudicating authority.

Analysis: The declared value of the imported cranes was rejected on the basis of departmental ascertainment by a chartered engineer. The appellants did not seriously dispute the departmental ascertainment but claimed that depreciation ought to have been allowed under the Board circular governing valuation of used machinery. The Tribunal held that the circular on depreciation was required to be followed and that the adjudicating authority had wrongly discarded the plea without proper consideration of the appellants' other submissions. The entire matter therefore required fresh examination.

Conclusion: The appellants were entitled to have the benefit of depreciation considered in accordance with the Board circular, and the impugned order was set aside with a remand for fresh adjudication.

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