TaxTMI 
TaxTMI 
2013 (3) TMI 368
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.... on record, the respondent imported a consignment of second hand used 4 colours offset printing press to set up printing press. The same was declared in the bill of entry as "Used 4 Colours Offset Printing Press Model Adast 745P Stream feeder Console Technotrans Alph. A.D. Powderspray Device". The said machine was imported from France. Along with the bill of entry, the respondent filed invoice, packing list, bill of lading etc. and FOB value was declared as Euro 15,000. 3. The price declared by the respondent was enhanced by the assessing authority on the bill of entry itself to Euro 56,100. The said enhancement was done on the basis of Chartered Engineer's certificate and by observing that model of the printing press was declared a....
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.... not rejected the transaction value by producing any cogent evidence, in which case the transaction value is required to be accepted as the correct assessable value in terms of provisions of Section 14 of the Act. Reliance was placed on Hon'ble Supreme Court's decision in the case of Motor Industries reported in 2009 (244) E.L.T. 4 (S.C.). The appellant also submitted that it was a second hand machine, which cannot be taken at par with new one. The value of the second hand machine depends upon the condition and available quality of the machine and the report of the Chartered Engineer indicating higher assessable value cannot be accepted. By referring to the provisions of Valuation Rules, it was submitted before Commissioner (Appeals) that t....
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....eclared Model ADAST 745P, however, the Chartered Engineer after physical verification in his report dated 8-12-2009 has mentioned the model of the said machine as "745 CP Automatic" and that as per Additional Director, Directorate of Revenue Intelligence letter dated 27-1-10 there is mis-declaration of description by the appellant by omitting the letter "C" because C denotes for Computerised machine which is of higher value and as such, the model No. 745P and model No. 745 CP (as per CE report) which is different one and costlier one. In this regard, the appellant in their grounds of appeal have explained that they filed information on the basis of documents received from the foreign supplier and that the department has wrongly interpreted ....
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....bove discussion that the charge of mis-declaration of the description of the imported machine does not sustain against the appellant. 8. The appellant have contended that as per section 14 of the Act, the value of imported goods shall be transaction value of such goods but no specific reason has been assigned as to why declared value has not been accepted and that the assessing authority loaded the value by more than three times of the actual value but has not shown any evidence regarding payment over and above the invoice price, made to foreign supplier or to any other person and there is also no other evidence substantiating the allegation of department. It has also been pleaded that assessing authority did not consider the contem....
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.... down in Rule 4(1), the transaction value will have to be determined and under Rule 4(2) if any exceptional circumstances is found then the transaction value indicated in Rule 4(1) will have to be rejected and further determined have to be made under Rule 8. Further Tribunal in the case of Iquira Inc v. CC, Chennai - 2004 (170) E.L.T. 583 (Tri.-Bang.) and New Techno Graphics v. Addl. Commissioner of Cus. & C.Ex. Hyderabad-II - 2008 (222) E.L.T. 260 (Tri.-Bang.) rejected the re-fixing of transaction value on the basis of Chartered Engineer certificate holding that no proper grounds made out for rejection of transaction value in terms of rule 4(2) of Customs (Valuation) Rules, 1988. The case of the appellant is squarely covered by the ratio o....
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....icating that the word "C" refers to third generation model and has no link with the computerised machine. The said certificate does not stand rebutted by the Revenue. In any case, we find that the lower authorities while enhancing the value of the machine has solely relied upon Indian Chartered Engineer's certificate. For enhancement of value, Revenue is first expected to discard the transaction value or at least reflect upon some evidence to cast doubt in respect of the same. Revenue in their memo of appeal is silent about the supplier's certificate indicating that the word "C" refers to third generation model of machine and not to computerised machine. In any case, the expression "console" stands declared by the respondent in their bill o....