TaxTMI 
TaxTMI 
1989 (5) TMI 207
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....Karkh Water Supply Scheme-I in Iraq. On completion of the overseas projects in Libya and Iran they imported into India old and used construction equipment, machinery and accessories in 3 lots, which were purchased by them new in foreign exchange out of their overseas projects earnings and were used extensively for 8 to 10 years for construction work carried out abroad. 1.1 Paragraph 213(5) of the I.T.C. policy for 1985-88 under the heading Project Exports, permits import of old and used equipments and machineries. In pursuance of the said policy they have imported vide bill of entry No. 2248/1 dated 31-8-1987 472 packages of construction equipment, machineries etc. used in the construction of the project in Libya into India from Lib....
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....signment, imported under bill of entry No. 2332 dated 10-9-1987, a freight certificate from the same freight forwarder along with a copy of the original freight contract dated 9th January, 1987. 3. The Assistant Collector rejected both the certificates of valuation issued by the Chartered Engineer and the freight and insurance certificate issued by M/s. Transmarcon Hamburn without assigning any reasons. The Assistant Collector assessed the FOB value from the estimated CIF value of equivalent new machinery as appearing in the Chartered Engineer's certificate after allowing depreciation at the rate of 16% for the 1st year, 12% for the second year, 10% for the third year and 8% for the 4th year and freight and Insurance charges were ca....
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....artered Engineer's certificate assessing the value of the equipment and machinery without assigning any reason. In respect of the imports under bill of entry No. 2248/1 dated 31-8-1987 the Customs authorities have accepted the value assessed by the Chartered Engineer only 21/2 months ago. In respect of the machinery and equipment imported under bill of entry No. 2322 dated 10th Sept., 1987 the valuation was made by allowing depreciation at the rate of 331/3% per year from the original value of the item when purchased new. The Customs authorities did not even agree to allow the depreciation allowance for the old equipment at the rate of 331/3% from the original purchase cost which was allowed 2 months ago for past consignment imported from I....
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....eration the relevant material. No opportunity was offered to the appellants by furnishing the relevant material so that the appellants can explain the material against them. It is also submitted relying on D.N. Kohli, Collector of Central Excise v. Krishna Silicate & Glass Works [1983 (12) E.L.T. 216] if the evidence and material which was made the basis of the impugned order was not disclosed to the petitioner nor a reasonable opportunity was given to him to rebut the same such an order is in violation of principle of natural justice. The lower authorities relied on the freight charges paid by one M/s Gamma (I) Ltd. in determining the freight charges in the case of the appellants. This information was not disclosed to the appellants. It wa....
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.... Engineer's certificate. There are no special guidelines regulating the percentage of depreciation to be granted in respect of second hand equipment and machinery. Therefore, he took into consideration the above factors and determined the depreciation. He also submitted that practice cannot remain the same and it depends on totality of circumstances. Therefore, the fact that for the previous year depreciation at 331/3% is allowed is not a ground for claiming depreciation at the same rate. Regarding the freight and insurance he supported the order of the lower authorities. 9. The main issue that arises for consideration is whether the order of the Assistant Collector is in violation of principle of natural justice and, therefore, lia....
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....rrived in s.s. "ANJOU" and accordingly the remaining FRT of US dollar 51,940/- has been charged (US dollar 2,97,000/- US dollar 2,45,060/-). We hope we have satisfied your querry regarding the freight and insurance." manuscript at the bottom: "This freight & insurance amount is as per factual agreement with the Transport Agency M/s Transmarcom. However under protest, we agree to your provisional assessment of freight & insurance @ U.S. dollar 77/FRT. In due course we shall submit our application for reconsideration". The issue, therefore, is whether the querry memo and the reply given by the appellants amount to complying with principles of natural justice. 12. It is settled law that assessment is a quasi-judicial process E....