TaxTMI 
TaxTMI 
2012 (11) TMI 82
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....of the Advocate but still there is no one present to represent the Respondents. So we have gone through the file with the help of the AR for Revenue. 2. The Respondents imported old and used machinery viz. used continuous strip casting line comprising machine furnace. They submitted invoice No. 16081 dated 22-7-2005 issued by M/s. Metro Alloys and Residues Limited, U.K. showing the value of the goods as GBP 35,450 (C&F) equivalent to Rs. 26,95,972.50 at the exchange rate of GBI=76,050/. They also submitted a certificate issued by M/s. Pual Clarkson, Chartered Engineers, U.K. in support of their declared value. The Revenue was of the view that the value declared for the machine is not proper and they enhanced value of Rs. 1,09,59,752....
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....; that normal expected residual life, subject to proper maintenance procedures being followed, was more than 15 years; that the spares presented were either new or in goods enough condition to represent 80% of their normal life expectancy; that the technology involved equivalent was consistent with present day practice which has not radically changed but found the asking price of GBP 35,450 (C&F) reasonable without giving any logical reasoning to come to his conclusion that such a low price of the goods i.e. just 7.25% of the original value was reasonable. The inspection report of the Chartered Engineer, as stated above indicated that machine was in good working condition having considerable residual life and it is matchable with contemp....
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....not be determined. Thus Rule 8 of the Valuation Rules was restored to in determination of the value of the goods. Board's Circular 493/124/86-CUS VI, dated 19-11-1987 which prescribes the manner of arriving at the value of capital goods (old and used) was also referred to in arriving at the value of the goods. Accordingly, it was felt that residual value of machine 30% of original price was reasonable valuation of goods. Taking the value of the goods in their year of manufacture i.e. 1970 as GBP 4,75,000 (declared in the Chartered Engineer's Certificate submitted by the importer) and after allowing depreciation of 70% the value of the goods arrived at Rs. 1,09,59,752.40 (assessable value)". 3. Aggrieved by the order, the respondents....
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....ve either accepted or rejected the certificate of the Chartered Engineer in full, in the case of Hartex Elastomers Pvt. Ltd. v. Commissioner of Customs - 2001 (128) E.L.T. 232. Hon'ble Tribunal has while discussing certificate of Chartered Engineer for valuation of second hand machinery held that the Certificate can be accepted in totality or not accepted. One cannot pick and choose and accept part of the same Certificate. Hence it was not correct on the part of the Adjudicating Authority to accept the condition of the machinery as per the Certificate of Chartered Engineer but reject the value put by him on the machinery." 4. The main argument of the Commissioner (Appeals) is that the Revenue should have either accepted the certific....