Depreciation-based valuation of a used imported car bars extra deductions unless legally applicable and actually included in value.

For a used imported car valued under the Transfer of Residence Rules, once the dealer invoice was accepted and maximum permissible depreciation of 70% was granted, further deductions were not allowable. Trade discount under the 1964 Board circular was held inapplicable because that circular concerned direct import of new motor cars, not used cars. VAT refund, dealer's margin, and unproven inland haulage charges were also rejected as not legally relevant or not shown to have formed part of the assessed value. The value of accessories fitted by the dealer was accepted on the basis of the invoice. The assessable value upheld by the Commissioner (Appeals) was sustained.

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Issues: Whether, in valuing a used imported car brought under Transfer of Residence Rules, the appellant was entitled to further deductions towards trade discount, VAT refund, inland haulage charges, dealer's margin, and accessories apart from the depreciation already allowed.

Analysis: The appellant had not produced the dealer invoice at the stage of initial assessment and only later produced it before the first appellate authority, which accepted the invoice and allowed the maximum depreciation of 70% for a vehicle more than four years old in terms of the applicable Board circular. The claimed trade discount under the 1964 Board circular was held inapplicable because that circular applied to direct import of new motor cars by passengers, diplomats and foreign nations, not to used cars. Deduction for VAT refund was rejected since maximum permissible depreciation had already been granted and the claimed refund had no relevance for an older used vehicle. The miscellaneous charges were treated as pre-importation costs, and inland haulage charges within India were not shown to have been included in the assessed value. Dealer's margin was also held not relevant for a used car, and the value of parts and accessories fitted by the dealer was accepted on the basis of the invoice produced by the appellant.

Conclusion: The claimed further deductions were not allowable, and the assessable value as upheld by the Commissioner (Appeals) was correct.

Ratio Decidendi: For a used imported car, once the maximum permissible depreciation has been granted on the basis of the invoice, additional deductions such as trade discount, VAT refund, dealer's margin, and unproven inland haulage charges are not allowable unless they are shown to be legally applicable and actually included in the value.

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