CEGAT Calcutta Increases Depreciation Rate for Imported Car

The Appellate Tribunal CEGAT, CALCUTTA modified the depreciation percentage for a six-year-old Mercedes Benz car imported by the appellant. The Tribunal increased the depreciation from 46% to 56% due to the car's age, despite the unavailability of the car for physical examination. The rejection of the invoice was upheld, and the Air Conditioner and Radio-cum-Cassette Player were separately assessed. The appellant received consequential reliefs based on the adjusted depreciation percentage, while the lower authorities' orders were upheld in other aspects.

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Issues: Valuation of imported Mercedes Benz Car, rejection of invoice, assessment of depreciation, assessment of Air Conditioner and Radio-cum-Cassette Player.

The judgment by the Appellate Tribunal CEGAT, CALCUTTA involved the valuation of a Mercedes Benz Car imported by the appellant. The authorities rejected the invoice provided by the appellant due to missing details like the Chassis number and invoice number, erasures, and overwritings. The valuation was based on Britain's Motor Guide with a 15% trade discount and a 46% depreciation for a car over six years old. Additionally, the Air Conditioner and Radio-cum-Cassette Player were separately assessed at Rs. 10,000.00 and Rs. 1,500.00, respectively.

The appellant argued that the 46% depreciation given to a four-year-old car was insufficient for the six-year-old Mercedes Benz. They also contended that the rejection of the invoice was unjustified and that the Air Conditioner, originally fitted by the manufacturer, should not have been separately assessed. On the other hand, the Respondent reiterated the lower authorities' findings, emphasizing that the car was no longer in Customs control, preventing a physical examination to determine the depreciation accurately.

After considering both parties' submissions, the Tribunal acknowledged the car's age and the standard 46% depreciation for up to a four-year-old model. However, recognizing the need for additional depreciation for older models, the Tribunal increased the total depreciation to 56% in the interest of justice, despite the car's unavailability for examination. The Tribunal allowed the appeal to the extent of modifying the depreciation percentage while upholding the lower authorities' orders in all other aspects. The appellant was granted consequential reliefs based on the modified depreciation percentage.

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