TaxTMI 
TaxTMI 
1996 (12) TMI 179
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....ant claimed the total value of the goods as per the value fixed in the chartered engineer's certificate wherein at Para 6 he valued the same as US $ 115,000, the price which was declared by the appellants in the BE for which they were invoiced also is the same. The Collector in this regard did not accept the transaction value as claimed in view of the fact that machine is a new one except for the fact that very soaringly it was used for administrative purpose as per the chartered engineer's certificate. However, the examination also revealed that it is a new machine and there were no signs of any use. The value of a new machine as per the recitals in the chartered engineer's certificate is US $ 170,000. In the impugned order, the Collector ....
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....at that time of prevailing exchange rate of Rs. 22.76 lacs and at the current exchange rate to Rs. 44.37 lacs. Considering the above factors he fixed the value of each of the machines in question to Rs. 30 lacs on ad hoc basis and determined the total value of the three machines at Rs. 90 lacs in terms of Rule 7 & 8 of the Customs Valuation Rules, 1988. 2. The learned Consultant in this behalf contended before us that the adjudicating authority had accepted the certificate of the chartered engineer. It is therefore contended before us that the price of the new machin....
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....e, stated that the appeal of the appellant may be allowed. He pointed out that there is no mis-declaration in this behalf in view of the fact that the appellant had come with clean hands while producing the chartered engineer's certificate which contained all the facts regarding the usage of the machines as well as the year of manufacture and also the condition of the machines. He therefore pointed out that the appellants declaration of the same as a second hand machine is based on bona fide belief of the appellant that it was a used machine even though for demonstration purposes and that year of make was 1991. Therefore, he pointed out that there is no warrant for fixation of the same on the ground of this mis-declaration and the levy of p....
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....ind that machines admittedly are of 1991 model and machines in question are admittedly found lying over with the appellant's supplier. Appellant had also come with clean hands by producing the chartered engineer's certificate which is admitted by the adjudicating authority. The adjudicating authority also did not dispute the findings given in the chartered engineer's certificate. For the sake of reference, we reproduce the chartered engineer's certificate as under :- "The technology of these machines represent the state of the art in Draw Frames. Manufacturer still manufactures and exports such machines. Value of the inspected equipment in 1991 when purchased new was $ 170,000.00 US. Total for the three machines." It is, therefore,....
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....f the three machines in question. It is seen that the Collector while arriving at the value of Rs. 30 lacs per machine has not stated any reason and he simply came to the conclusion that each machine can be valued at Rs. 30 lacs. There is absolutely no basis for the same. 6. Another important factor which is available in this case, as could be seen from the impugned order itself is that Model D-600 is in circulation currently than DX-500. It therefore goes to show that this Model DX-500 is not up-to-date and that it has become outdated. This is another relevant factor which should be taken into consideration. We do not accept the rationale of the decision of the adjudicating authority for fixing the price at Rs. 30 lacs per unit, as....