1987 (11) TMI 230

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....claration and short-fall in the import licence value, imposed a fine of Rupees one lakh in lieu of confiscation of the goods. No penalty has been imposed. 2. We have heard both sides and have carefully considered their submissions. The appellants say that Shri P.V. Nambiar, a non-resident Indian, purchased a second hand IBM Computer, Model 4331 - J01/J1, 1 Megabyte Memory, of 1979 manufacture, and with peripherals, at Dubai in 1982 from a company named Comcap BV for $ 31,000. He used it in Dubai till early 1985. It was imported into India in May 1985 under the NRI Scheme. It is this machine which is the subject matter of this appeal. Before import, the machine was hot-staged and tested in U.K. The Chartered Engineer, who examined the Com....

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....site maintenance. Further, they plead, the rate of annual depreciation adopted by the Collector - 10% - was very low when the Income-tax Department allowed depreciation of 33-1/3% for Computers. 4. The appellants plead that the method of valuing second hand Computers on depreciation method was not right. It is common knowledge that, unlike other machinery, computers became obsolete very fast as soon as newer and better models appeared and when that happened, the older models, though still having a good residual life, could be had for a song. The appellants placed or record a Blue Book "Computer Price Guide", July 1985 Edition, published by Computer Merchants Inc., New York, which gives ruling retail market prices of second hand computers....