TaxTMI 
TaxTMI 
2015 (6) TMI 775
X X X X Extracts X X X X
X X X X Extracts X X X X
....ct, awarded to the appellant in Iraq, it had purchased certain equipments/ machinery of foreign origin. After the project in Iraq was over, these machineries were sent to Nepal as the same was required for completion of another contract in Nepal. The contract in Nepal was over some time in the year 1990. Since this machinery was not required in Nepal, the appellant decided to import the same to India. For this purpose, Bill of Entry dated 16.02.1990, 28.02.1990, 22.03.1990, 11.04.1990, 16.04.1990 and 13.5.1990 were filed. In these bills of entries, the valuation was disclosed by the appellant by adopting a formula as under:- When the machinery was brought to Nepal after its use for about six years in Iraq, the valuation thereby was ascer....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Custom, Excise & Gold (Control) Appellate Tribunal (hereinafter referred to as 'CEGAT') yielded the same result as the CEGAT has also dismissed the appeal vide orders dated 28.05.2001 by observing as under: - "We have heard the rival submissions. We have also perused the case records. We note that in the instant case it is only transfer of the goods from Iraq to Nepal and Nepal to India. There was no sale, therefore, the question of determination of transaction value did not arise. Only course open to the department in the instant case was to take the original value and allow depreciating which authorities below have rightly done." We find that section 14 of the Customs Act, 1962 deals with valuation of goods for the purposes....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... of powers contained under Section 156 of the Customs Act, Customs Valuation (Determination of Price of Imported Goods) Rules 1988 have also been framed. In those cases, where it is not possible to determine the price at which such goods are ordinarily sold or offered for sale, Rule 8 provides for residual method and stipulates that the value shall be determined using reasonable means consistent with the principles and general provisions of the said Rules as well as provisions of sub-section (1) of Section 14 of the Customs Act as already reproduced above. It cannot be denied that one of the reasonable method consistent with the principles of valuation would be the depreciation method. In order to ensure that in employing the method of d....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nt condition of the machinery and nature of reconditioning or repairs, if any, carried out. This information if otherwise found acceptable would enable the officers to determine the original value of the machinery for purpose of allowing depreciation on the scale mentioned above. The cost of reconditioning done to the machinery (which would be available in the chartered engineers certificate) may be added to the depreciated value for the relevant year in which reconditioning was done. The depreciation will be calculated on the original value of the machinery under import. 4. The above instruction would apply to import of second-hand machinery, including machinery being imported by project exporters. 5. Please acknowledge receipt of th....