TaxTMI 
TaxTMI 
1986 (5) TMI 172
X X X X Extracts X X X X
X X X X Extracts X X X X
....t Spinning Frames 4¾" pitch 96 spindle manufactured by M/s. James Machkie the year of manufacture being 1967. The Assistant Collector did not accept the invoiced value of GBP 19,600.00 cif and fixed the price of the goods under Rule 8 of the Customs Valuation Rules 1963. It was noticed by the Customs authorities that the same appellants had imported similar second hand machines with the year of manufacture 1968 some time later for GBP 40,000 cif. The Assistant Collector on the basis of the prices of the new machines at the time of manufacture and that of the new machines in 1980 when the quotation for the import of machines was obtained and after giving an allowance for depreciation at the rate of 6¼% and also appreciation of ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....be included in the assessable value inasmuch as these are in the nature of service charge and the Appellate Collector has not given any findings in this regard. They have further pleaded that no addition should have been made towards freight and insurance as these elements are included in the invoice price. The appellants have requested that the case may be decided without giving them any hearing on the basis of the pleadings made in the appeal memorandum. The matter was therefore taken up for decision in the light of the above. 5. The learned SDR for the Department stated that he adopts the reasoning as contained in the order of the adjudicating authority and in the impugned order. 6. The points that arise for our consideration ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Adverting to the method adopted by the lower authorities in arriving at assessable value we find that the lower authorities have taken into consideration the price of the goods at the time of manufacture and also that at the time of import and has allowed necessary depreciation after making adjustments in the price of the machines due to the general price rise in the value of the goods over the years. The depreciation allowed was 6¼%, the price rise was taken as 1/3rd of the total price rise between 1970 and 1980 of that in the case of prices of the new machines. No basis for the depreciation of 6¼% and for taking the appreciation in the value of the second-hand machines as one-third of that of the new machinery due to general....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ould have been also reduced. In any case, we find that the appellants had not suffered any disadvantage on this account and probably the value fixed now in terms of the Appellate Collector's order is lower than what might have been fixed in case Rule 3 read with Rule 4 of the Customs Valuation Rules 1963 had been resorted to. We, therefore, find no reason to accede the appellants plea for accepting the invoice value for purpose of assessment. 9. The appellants second plea that no addition should have been made towards freight and insurance for arriving at assessable value inasmuch as their invoice price is cif price and the freight has been prepaid by the suppliers. We observe that since the price shown in the invoice has not been a....