1988 (12) TMI 208 - AT - Customs

Tribunal Upholds Decision on Imported Car Valuation for Import Duties

The Tribunal upheld the lower authorities' decision on the valuation of the imported car for import duties. The appellant's claims for a trade discount ... Valuation Trade discount not excludible when special discount already excluded Issues: Valuation of imported car for levy of import duties, denial of trade discount, denial of diplomatic discount, denial of full benefit of deduction for damages suffered in accidents.In this case, the appellant, a First Secretary in the Embassy of India, imported a car into India after completing his service in Nepal. The appellant challenged the valuation of the car for the purpose of levy of import duties. The main contentions raised by the appellant were related to the denial of a normal trade discount of 15%, a claimed 10% 'diplomatic discount,' and the full benefit of deduction for damages suffered in accidents. The appellant argued that the trade discount should have been allowed as it is a common practice in motor car sales, even if not explicitly mentioned in the invoice. The appellant also claimed that the diplomatic discount was unjustly denied, asserting it was a standard discount for diplomats. Lastly, the appellant sought a deduction for repair charges paid due to accidents.The lower authorities, represented by Shri A.S.R. Nair, upheld their decision regarding the valuation of the car. They contended that since no catalogue price was available, the assessment was based on the supplier's invoice price, making the trade discount inapplicable. Additionally, they argued that the claimed 10% diplomatic discount was not proven to be extended to all diplomats and, therefore, not admissible. Regarding the damages, it was highlighted that the Collector (Appeals) had already allowed a depreciation amount, which was deemed adequate.Upon considering the arguments from both sides, the Tribunal found that the appellant failed to provide sufficient evidence to support the claims for trade discount and diplomatic discount. The Tribunal noted discrepancies in the appellant's submissions, such as the lack of evidence for the claimed diplomatic discount. Concerning the damages, the Tribunal analyzed the repair costs in relation to the original price of the car and found them disproportionate. The Tribunal acknowledged the allowance of depreciation by the Collector (Appeals) as fair and reasonable. Ultimately, the Tribunal upheld the lower authorities' decisions, concluding that there was no justification to interfere with the valuation of the car for import duties. The appeal was dismissed based on the findings and analysis presented.