1998 (8) TMI 230 - AT - Customs

Appellate Tribunal Upholds Valuation of Imported Car

SHOBHA THAKKAR Versus COMMISSIONER OF CUSTOMS, MUMBAI

SHOBHA THAKKAR Versus COMMISSIONER OF CUSTOMS, MUMBAI - 1999 (106) E.L.T. 519 (Tribunal) Issues: Determination of assessable value of imported car; Consideration of purchase price and freight charges; Applicability of depreciation in value determination; Evaluation of evidence presented.In this appeal before the Appellate Tribunal CEGAT, MUMBAI, the main issue revolves around the determination of the assessable value of a Ford Taurus 1989 model car imported by the appellant. The Custom House assessed the car at Rs. 1,33,497, and the Commissioner (Appeals) rejected the appellant's appeal for reduction. The appellant argued that she purchased the car in the U.S.A. for $1450, with an additional certified freight cost of $500. The Assistant Commissioner initially valued the car based on a new car price, applying a 15% discount to adjust for wholesale and retail price differences. However, the appellant insisted on assessing the car at the claimed purchase price of $1450, supported by a fax from A. Smith Motors, Inc., which the Tribunal found to be unreliable due to inconsistencies in the document. The Tribunal upheld the Assistant Commissioner's valuation method, which included depreciation from the first quarter of 1990 till the last quarter of 1995, considering the lack of clarity on the car's manufacture or first purchase date.Regarding the freight charges, the appellant argued for a lower value of $500 compared to the department's determination of $1450. The Assistant Commissioner based the freight value on charges for other contemporaneously imported vehicles. The appellant presented an invoice and fax from Keymost International, indicating a total charge of $4853 for a full container with personal effects, with a shipping charge of $500 for the car shipped with two other vehicles. However, the Tribunal noted discrepancies in the evidence provided, such as the lack of proof of the car being shipped with other vehicles and inconsistencies in the invoices. Consequently, the Tribunal upheld the Assistant Commissioner's valuation, as the appellant failed to substantiate the claim of lower freight charges.In conclusion, the Tribunal dismissed the appeal, affirming the valuation of the imported car at Rs. 1,33,497 and rejecting the appellant's arguments regarding the purchase price and freight charges. The decision was based on the lack of credible evidence supporting the appellant's claims and the reasonableness of the valuation method applied by the Assistant Commissioner.