1987 (2) TMI 335 - AT - Customs

Tribunal Upholds Duty Assessment on Imported Vehicles, Rejects Rectification Applications

The Tribunal upheld the assessment of duty on imported vehicles, rejecting the discount claim and disallowing depreciation of accessories. Rectification ... Rectification Application Issues:1. Assessment of duty on imported vehicles2. Rejection of discount claim on manufacturer's invoice3. Disallowance of claim for depreciation of accessories4. Rectification of mistake applicationsAnalysis:1. The judgment pertains to the assessment of duty on two imported Toyota Carona 1600 DLX Sedans. The applicants presented the manufacturer's invoice, which was accepted by the Assessing Authority. However, the claim for a 15% discount on the invoice was rejected. The Tribunal upheld the assessment of duty based on the price at the point of landing in India, adding freight, insurance, and landing charges. The Tribunal also rejected the claim for depreciation of accessories. The appeals were ultimately rejected, leading to the filing of rectification applications.2. The applicants raised various contentions in their rectification applications, including the application of principles of Promissory Estoppel, valuation under Customs Act and Customs Tariff Act, and the relevance of departmental circular providing for a 15% discount. The applicants argued that the Tribunal failed to consider material aspects leading to an erroneous appreciation of law and facts. The advocate for the applicants presented detailed arguments to substantiate these contentions.3. On the other hand, the departmental representative contended that there was no basis for Promissory Estoppel as the manufacturer's invoice was produced, and the department acted upon it. The department accepted the invoice value without evidence of a lesser payment by the applicants. The department also argued against the necessity of providing depreciation for accessories, stating there was no proof of compulsory supply.4. The Tribunal, after considering the arguments and legal provisions, emphasized that rectification of mistake applications is limited to correcting errors apparent from the record, not for re-arguing the matter or revising decisions. The Tribunal reiterated that the contentions raised by the applicants were already considered in the previous orders and found to have no merit for rectification. The Tribunal upheld its earlier decisions regarding the assessment of duty, rejection of discount claim, and disallowance of depreciation. Despite careful consideration, the Tribunal found the rectification applications devoid of substance and rejected them.In conclusion, the judgment provides a detailed analysis of the issues raised by the parties, the legal principles involved in the assessment of duty on imported vehicles, and the limitations of rectification applications in a quasi-judicial setting.