2004 (3) TMI 691

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.... Srivastava, JDR, for the Respondent. [Order per : Moheb Ali M., Member (T)]. - The appeal arose out of the order of the Commissioner (A). In the impugned order the Commissioner confirmed the lower authority's order determining the value of the imported machine at D.M. 4,00,000/- f.o.b. Hence the appeal. 2. Briefly the facts are that the Appellants imported one second hand unused flo....

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.....o.b. and proceeded to determine the value as D.M. 4,00,000/-. The grounds for rejection are that it is a distress sale and so the price paid are payable is not in the course of normal international trade. The second ground is that the machine under import is a brand new one and not second hand as declared. A second hand machine means one that is used and not an unused machine even though the mach....

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....e delivery. The date of import is 20-12-97 whereas the machine is a 1993 make. Any machine which was manufactured in 1993 and was lying in a godown for 4 years has to be considered as a second hand machine only. He further argued that the department has erred in determining the value as D.M. 4,00,000/- on the basis of an inter office memo. Such a memo cannot be a basis for rejecting the transactio....

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....ed without sufficient cause. It is not the case of the department that the conditions for rejection of value under Rule 4 of the Valuation Rules exist in this case. The Apex Court in the case of Eicher Tractors Ltd. [2000 (122) E.L.T. 321] held that transaction value can be rejected only when the provisions of Rule 4 are satisfied. The ratio of this judgment applies in the present case. It is not ....