TaxTMI 
TaxTMI 
2002 (6) TMI 312
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....7,125/-. Against the said licence they had imported 8 Nos. of Schlafhorst autoconers, 138 model GKW-P of 50 spindles each of 1979 make valued at Rs. 72,56,500/- CIF, for which they filed Bill of Entry No. 3076, dt. 1-11-94 (GM/Item 2879/10, dated 31-10-94) for clearance of the goods for home consumption and 10 numbers of the same machinery vide BE No. 3466, dated 9-2-95 (316/27, dated 6-2-95). The residual value left in the licence as found by the original authority was Rs. 19,007/- (US $ 6310.84). The goods have already been cleared by the importers. 3. The report of the Appraising officer inter alia stated that the description, quantity and other specifications/operational features, were as per the Chartered Engineer's Certificate, invoice, packing list and copy of the catalogue and the autoconers were reported to be equipped with 1 splicer for 10 spindles, uster C3 yarn clearer, electrical yarn length measuring device etc. The plate marks found embossed indicated the details of the manufacturer, model/type and the serial number etc. which also tallied with the machine's details given in the Chartered Engineer's Certificate. The year of manufacture was reported to be 1979....
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....-in-original passed by the original authority by holding that the value adopted in the orders-in-original is quite reasonable and it follows the accepted norms of valuation for second hand machinery after giving permissible depreciation. 7. Aggrieved by the Orders-in-Appeal, the appellants have come in appeal before us on the following grounds in these appeals : (a) The transaction value of each autoconer declared by the appellants was fair and correct. (b) There was no discrepancy with regard to the specifications, markings, age or other details and hence the transaction value declared by them should have been accepted. (c) The authorities below have not brought in any evidence to show that the transaction value declared by the appellant was not true value in the absence of evidence of any relationship between the buyers and the sellers and also in the absence of any illegal or undisclosed transaction between them. (d) There was no warrant for considering the value of the goods on the date of manufacture when the matter before him was appraisal of the second hand machinery. (e) &nbs....
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....se law cited by both the sides. We find that in this case, licence was issued by the DGFT for the importation of 18 numbers of Second hand Schlafhorst Autoconers of 1979, model 138 and the estimated value was Rs. 1,63,27,125/-. As against this, the appellants imported eight machines vide Bill of Entry No. 3076, dated 1-11-94 and the balance 10 machines vide Bill of Entry No. 3466, dated 9-2-95. Chartered Engineer has given a certificate showing the value of new machine as US D 48,500/-. The CIF value declared by the appellants was US D 28,750/- (CIF Bombay). The department assessed the goods by taking the value of the new machine as DM 3,30,000/- (Rs. 20,90,880/-) per machine for the first importation of 8 machines and Rs. 20,66,130/- for the subsequent importation of 10 machines, discarding the transaction value declared by the importers which was Rs. 9,07,062.5 per machine. The basis of the department in assessing the machine at the above price was the circular issued by the New Custom House, Bombay which enclosed a letter showing the manufacturer's price as DM 3,30,000/- (Rs. 20,90,880/-) per machine. It is argued that this letter was not made available to the appellants. The fi....
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.... 1997 (90) E.L.T. 68 has held that invoice value cannot be rejected merely because machinery imported is second hand and that for rejecting invoice value, basis has to be laid for such rejection. In the case of Madura Coats v. CCE, Madurai reported in 2000 (118) E.L.T. 418, it has been held that when a Chartered Engineer's certificate supporting the transaction value is produced, it cannot be rejected without either contemporaneous imports of like goods at higher value being shown or proof of transaction not being in normal course of international trade. We find that in the present case, the department has placed reliance on the Special Investigation Branch (SIB) of the New Custom House, Bombay, Circular No. 25/94 enclosing the copy of manufacturer's viz. Schlafhorst Co. giving the value of certain autoconers model 138 in 1978/79 to discard the transaction value declared by the importers. The appellants have stated in the memorandum of appeal that the said circular enclosing the letter of the manufacturer's have not been made available to them at any stage of the proceedings and that the evidence has been obtained and used by the department at the back of the appellants which is ag....