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of <h1>Ruling: Fresh valuation needed for imported machines based on supplier's invoice.</h1> <h3>PUJARA PACKAGING Versus COLLECTOR OF CUSTOMS</h3> The appeal was allowed by remand for a fresh determination of the assessable value based on the supplier's invoice, in line with legal principles ... Valuation Issues:Undervaluation of imported goods, determination of assessable value of imported second-hand machines, misdeclaration of number and unit price of machines, applicability of Section 14(1)(a) of the Customs Act, rejection of declared unit price, comparison of imported machines with those of other importers, legal tenability of valuation based on similar machines, reliance on case law for valuation of second-hand machinery.Analysis:The case involved an appeal against an order by the Additional Collector of Customs, Bombay regarding the import of second-hand printing machines. The appellants declared the goods in the Bill of Entry but additional machines were found upon examination, leading to undervaluation charges. The authorities determined the value of imported machines at Rs. 6,65,000, compared to the declared value of Rs. 2,81,193, alleging an attempted duty evasion.The appellants argued that the valuation based on similar imported machines was erroneous, emphasizing that the condition and residual life of each second-hand machine could vary. They cited case law to support their contention that the declared unit price should be accepted unless evidence of underinvoicing is proven.On the Revenue's behalf, it was argued that misdeclaration of machines and unit prices occurred, justifying the valuation based on identical used machines of the same make and year.Upon examination, the Tribunal found that the valuation based on similar imported machines was not sustainable. Citing previous decisions, the Tribunal emphasized that the value of second-hand machines should be based on the supplier's invoice unless evidence of underinvoicing is established. As the case records lacked crucial documents, the matter was remanded to the Assistant Collector for reassessment of the assessable value.Ultimately, the appeal was allowed by remand for a fresh determination of the assessable value based on the supplier's invoice, in line with legal principles governing the valuation of second-hand machinery.This detailed analysis of the judgment highlights the issues of undervaluation, misdeclaration, and the correct method for determining the assessable value of imported second-hand machines, providing a comprehensive overview of the legal reasoning and decisions involved in the case.
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