2001 (9) TMI 388

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....dence on 24-2-2001. She had purchased a second hand Royce Car, Model Silver Seraph of 1998 make on 26-1-2001 from M/s. Michael Powles Limited, an authorised dealer of Rolls Royce. As per the relevant invoice dated 26-2-2001 the price of the car would come to GBP70,000. An amount of GBP600/- was paid towards freight. The appellant filed Bill of Entry dated 27-2-2001 for clearance of the aforesaid car. 3. The Customs authorities were not inclined to accept the value of the car as described by the invoice. Therefore, the appellant produced copy of the Parker's Guide to support the declared value. The Parker's Guide showed price of the car and the year of manufacture as GBP1,55,175 which was inclusive of VAT and other taxes but without ....

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....ppellant, unless his case comes under the proviso to sub-rule (2) of Rule 4 of Customs Valuation Rules, 1988 the transaction value of the imported goods should have been taken as the price actually paid. Apart from stating that the invoice value is far too low in comparison, there is no mention in the order impugned that the proviso to sub-rule (2) of Rule 4 would be applicable in the case. Therefore, according to the appellant, the authority should have accepted the transaction value of the imported goods as the price actually paid by her and as reflected in the invoice. 6. On the other hand, the learned Departmental Representative would submit that in the light of the provisions contained under Section 14(1) of the Customs Act, 19....

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.... of entry is presented under Section 46, or a shipping or bill of export, as the case may be, is presented under Section 50] (1A) Subject to the provisions of sub-section (1), the price referred to in that sub-section in respect of imported goods shall be determined in accordance with the rules made in this behalf." Rule 3 and relevant portion of Rule 4 with its provisos of Customs Valuation Rules, 1988 are quoted below :- "3. Determination of the method of valuation. - (i) the value of imported goods shall be the transaction value; (ii) if the value cannot be determined under the provisions of clause (i) above, the value shall be determined by proceeding sequentially through Rules 5 to 8 of these rules. 4.&....

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....p;                            ...                             ...                             .." 8. We are not able to accept the contention raised by the learned representative that since the deemed value of goods in the course of international trade has been provided for under sub-section (1) of Section 14, it is open to t....

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...., for delivery at the time and place of importation - in the course of international trade. The word 'ordinarily' necessarily implies the exclusion of 'extraordinary' or 'special' circumstances. This is clarified by the last phrase in Section 14 which describes an 'ordinary' sale as one 'where the seller or the buyer have no interest in the business of each other and the price is the sole consideration for the sale.....'. Subject to these three conditions laid down in Section 14(1) of time, place and absence of special circumstances, the price of imported goods is to be determined under Section 14(1A) in accordance with the rules framed in this behalf. 8. Reading Rule 3(i) and Rule 4(1) together, it is clear that a mandate has been cast ....