Customs valuation of imported second-hand cars follows catalogue ex-factory price with trade discount and VAT deductions.

Imported second-hand cars were valued for customs duty by taking the ex-factory price from the World Car Catalogue and then allowing deductions for trade discount and Value Added Tax. The Delhi Custom House practice was accepted as the proper valuation basis, and deduction of VAT was not opposed. The car was therefore to be re-assessed in line with that method, using the catalogue price as adjusted by the recognised deductions.

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Issues: Whether the imported second-hand car was required to be re-assessed for customs duty on the basis of the ex-factory price shown in the World Car Catalogue, after allowing deduction for trade discount and Value Added Tax.

Analysis: The valuation practice followed by the customs house was to adopt the ex-factory price from the World Car Catalogue and then allow deduction of 15% towards trade discount, followed by deduction of Value Added Tax wherever applicable. The request for deduction of VAT was not opposed, and the existing practice was accepted as the proper basis for valuation in the present case.

Conclusion: The car was directed to be re-assessed in accordance with the Delhi Custom House practice of taking the ex-factory price from the World Car Catalogue and allowing deductions for trade discount and VAT.

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