Second-hand import valuation rejected declared value failed, and 64% depreciation was applied for recomputation.

The declared transaction value of a second-hand imported machine was rejected because no reliable evidence established the month of manufacture, comparable contemporaneous imports, or authoritative international price literature for such used machinery. Valuation was therefore upheld on the accepted depreciation basis, and the departmental depreciation rate was applied instead of the lower flat deduction used by the adjudicating authority. The import valuation was required to be recomputed by allowing 64% flat depreciation, with consequential relief to follow.

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Issues: Whether the declared transaction value of the imported second-hand machine could be rejected and whether depreciation should be recomputed at 64% instead of 54%.

Analysis: The imported machine was a second-hand 1984 model, and no reliable material was produced to establish the month of manufacture or comparable contemporaneous imports. In the absence of authoritative international price literature for such used machinery and given the nature of the goods, the declared transaction value was not accepted and valuation by the accepted depreciation method was held appropriate. The rate of depreciation suggested by the departmental board was applied, and the adjudicating authority's adoption of a lower flat deduction was not sustained.

Conclusion: The valuation was required to be recomputed by deducting 64% depreciation flatly, with consequential relief to follow, and the appeal succeeded.

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