Customs depreciation for damaged imported vehicle may be enhanced where repair evidence shows standard allowance is inadequate.

Where an imported vehicle has suffered extensive accident damage and had already been used abroad for four years, customs depreciation may exceed the normal departmental allowance if the available material shows that the standard reduction does not adequately reflect the damage. The text notes that the car was not available for re-examination, but repair estimates supported substantial damage. On that basis, the additional 3% depreciation allowed by the lower authorities was found inadequate, and 60% depreciation was accepted for customs assessment purposes.

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Issues: Whether the imported car, having suffered extensive damage and having been used abroad for four years, was entitled to depreciation at 60% instead of the depreciation allowed by the lower authorities.

Analysis: The car was no longer available for re-examination, but the repair estimates indicated substantial damage. The normal departmental depreciation for four years of use abroad was 46%, and the additional depreciation granted for the accident-related damage was only 3%, which was found to be inadequate in the circumstances.

Conclusion: The claim for 60% depreciation was accepted and the lower orders were modified accordingly in favour of the appellant.

Ratio Decidendi: Where an imported vehicle has suffered extensive damage and the available material shows that the departmental allowance does not adequately reflect that damage, a higher depreciation may be granted for customs assessment purposes.

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