TaxTMI 
TaxTMI 
Valuation practice of second hand machinery to be adopted by all Custom Houses/ Customs Commissionerates-regarding
X X X X Extracts X X X X
X X X X Extracts X X X X
....l Commissioners of Customs, All Commissioners of Central Excise, and All Commissioners of Customs & Central Excise Sir, Subject: Valuation practice of second hand machinery to be adopted by all Custom Houses/ Customs Commissionerates-regarding/- It has been noticed that the Custom Houses / Customs Commissionerates have been adopting different assessment practices with regard to valuation of imported Second Hand Machinery / Capital Goods. As this was resulting into diverse assessments the following guidelines are being issued so that assessments are done as far as possible on their basis. 2. A careful analysis of the Tribunal decisions and an Apex Court judgement on the issue of valuation of second-hand machiner....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ilarly, there will also be no difficulty in rejection of transaction value in cases where the assessing officer proves that certain basic particulars like description, period of usage, extent of the re-conditioning, year of manufacture, model no., price when new, etc., are misdeclared either in the Chartered Engineer's Certificate or in the invoice. There will also be no difficulty in rejecting the transaction value in cases which are hit by the provisions to Sub-Rule (2) of Rule 3. Difficulties may however be faced in situations other than those described above. 4. In this context, attention of the assessing officers is drawn to Rule 12 of the Customs Valuation (Determination of Value of Imported Goods) Rules,200....
X X X X Extracts X X X X
X X X X Extracts X X X X
....g. Co. [2002 (143) ELT 364] refers. 5. Thus in respect of valuation of second hand machineries as well, the assessing officers may apply Rule 12 in appropriate cases. As an illustration, if the declared value of a second hand machinery is found to be much below the value arrived at by the depreciation method on the basis of the certified price of the new machinery in the year of its manufacture, the assessing officer may have reason to doubt the truth or accuracy of the declared value, and ask the importer to furnish further information and explanation. If he is satisfied, he may accept the declared value. But, if he still has reasonable doubt about the truth or accuracy of the declared value, he can reject the declared....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nery, vi) Nature of reconditioning or repairs carried out, if any, and the cost (including the dismantling cost, if any) thereof, vii) Expected life span. (b) There is no need to specify the agencies whose certificates alone, issued at the port of loading, would be accepted. The number of such agencies should not be limited. (c) In the absence of proper Load Port Certificate, a local Chartered Engineer's Certificate may be accepted. Each Custom House may consider issuing Public Notices giving names and addresses of Chartered Engineers, whom the trade can contact for issuance of CE Certificate. (d) It is not essential to have the examination of the second hand machinery by a panel of o....