Tribunal grants US $500 allowance for imported car valuation, excludes accessory costs, sets aside redemption fine The Tribunal allowed the appellant's challenge on the assessable value of the imported car, providing a US $500 allowance based on a similar model's price ...
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Tribunal grants US $500 allowance for imported car valuation, excludes accessory costs, sets aside redemption fine
The Tribunal allowed the appellant's challenge on the assessable value of the imported car, providing a US $500 allowance based on a similar model's price differential. It determined that accessories were not included in the assessable value as they were separately charged. Freight charges were considered in the valuation, but the inclusion of accessory prices was dismissed. Additionally, the Tribunal set aside the redemption fine imposed for a nominal shortfall in the face value of the CCP, remanding the case for duty revision and consequential relief to the appellant.
Issues: Valuation of imported car based on a similar model, inclusion of accessories in assessable value, consideration of freight charges, imposition of redemption fine.
In this case, the appellant imported a second-hand Toyota Corolla Sedan LE-4-Dr 1985 and the assessment was based on the ex-works price of a 1985 Model Toyota Corolla SR-4-Dr 1600 CC car. The appellant challenged the assessable value determined by the Assistant Collector, arguing that the SR-4-Dr model was superior and the price differential should be considered. The Tribunal found the valuation based on the SR-4-Dr model unreasonable and allowed a US $500 allowance on the reported ex-works price of the SR-4-Dr model for the imported car, considering relative engine capacity and other factors.
Regarding the inclusion of accessories in the assessable value, the appellant claimed that the air-conditioner and radio cassette player were standard equipment, but the Tribunal found that these items were separately charged according to the Red Book official used car catalogue. Hence, the ex-works price of the car was not inclusive of these accessories.
The Tribunal also addressed the consideration of freight charges, agreeing with the appellant that the freight charges from the country of origin, Japan, should have been taken into account in determining the assessable value. However, the claim that the price of accessories should be included in the ex-works price was dismissed.
Lastly, the Tribunal found the imposition of a redemption fine of Rs. 2,000 for a nominal shortfall in the face value of the CCP unjustified and set aside the fine. The appeal was allowed, and the case was remanded to the Assistant Collector for revising the duty based on the Tribunal's order and providing consequential relief to the appellant.
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