Best-judgment valuation of imported used cars applies when reliable evidence is lacking; duty is recomputed on supported value.

Where the department fails to substantiate the assessable value of an imported used vehicle with reliable evidence, valuation may be determined on a best-judgment basis from the available material, including the vehicle's age, make, model and any supporting certificate. The declared insurance value was not treated as conclusive, but the record also lacked expert examination or seller-based support for the higher figure. On that basis, the assessable value was reduced and duty recomputed accordingly. Redemption fine and penalty were left undisturbed.

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Issues: Whether the assessable value of the imported used car was correctly determined, and whether the duty liability should be recomputed on a reduced value.

Analysis: The car was imported under the Carnet Scheme and was entitled to remain in India for a limited period under Notification No. 296/76-Cus. The authorities fixed the assessable value at Rs. 99,023/- without tangible and concrete evidence. The declared insurance value was not accepted as conclusive, but the record also did not show examination by an automobile expert or supporting material from the seller. In these circumstances, the appropriate course was to determine value on the basis of best judgment, taking into account the age, make and model of the car and the available certificate assessing a much lower value.

Conclusion: The assessable value was reduced to Rs. 25,000/- and duty was to be charged on that basis, in favour of the assessee in part.

Final Conclusion: The appeal succeeded only to the extent of reduction of the assessable value, while the redemption fine and penalty were left undisturbed.

Ratio Decidendi: Where the department fails to establish assessable value by reliable evidence, the value of an imported used vehicle may be determined on best judgment basis from the available material.

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