TaxTMI 
TaxTMI 
2016 (12) TMI 1505
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....he declared value was enhanced to EUR483086/- on the bill of entry and the challenge to this enhancement was allowed by the first appellate authority who remanded it back to the original authority for issue of a speaking order. The speaking order rejected the declared value on the ground of discrepancy in the year of manufacture and that, based on an opinion of the expert appraiser who also assessed the CIF value to be Rs. 2,91,53,608/-, the cost of reconditioning was unduly low. The appellant had also preferred a refund claim for return of the excess amount so charged but this was rejected by the proper officer on the ground that the pre-condition of challenge to assessment had not been complied with. The relevant portion of the order of the original authority is extracted below: "In the light of above said detailed opinion of Expert Appraiser, I hereby order that the declared CIF value of goods be enhanced to Rs. 608 and assessment be finalised, accordingly." 4. The relevant portion of the impugned order is extracted below: The appellants have imported second hand goods. The YOM declared by them has been found wrong during physical examination of the goods. The ap....
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....porters submitting a certificate issued by an independent Chartered Engineer or any equivalent in the country of supply. The certificate should indicate interalia:- i) Price of new machinery as in the year of its manufacture, ii) Current CIF value of new machinery if purchased now, iii) Year of the manufacture of machinery, iv) Sale price of the supplier, v) Present condition of machinery, 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 officers, since in many Customs formations no machinery expert is posted. The' routine exa....
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....istinguished being for new goods is not acceptable. (d) The facts of this case do not show that any of the conditions as specified in sub-rules (a) to (d) of Rule 4(2) are attracted in this case to allow discarding of the transaction value. These read as under :- "(2) The transaction value of imported goods under sub-rule (1) shall be accepted : Provided that - (a)  there are no restrictions as to the disposition or use of the goods by the buyer other than restrictions which - (i)  are imposed or required by law or by the public authorities in India; or (ii)  limit the geographical area in which the goods may be resold; or (iii) do not substantially affect the value of the goods; (b)  the sale or price is not subject to some condition or consideration for which a value cannot be determined in respect of the goods being valued; (c)  no part of the proceeds of any subsequent resale, disposal or use of the goods by the buyer will accrue directly or indirectly to the seller, unless an appropriate adjustment can be made in accordance with the provisions of Rule 9 of these rules; and (d)  the buyer and se....
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....Engineer's certificate on valuation was also not acceptable. Yet, the very same Chartered Engineer's certificate has been accepted for the purpose of the age of the machine. With great respect, we cannot subscribe to a position where the machine's age and description in a Chartered Engineer's certificate is accepted as correct, but both the valuation thereof in that certificate and that in the invoice (supportive of each other) are summarily rejected. This goes against the very argument of ld. SDR that there is a nexus between age and value. The said order thereafter, goes on to base the valuation on value of imports of similar machines minus depreciation. In the present case, the impugned order clearly holds that no such comparative price is available. On this count also, the said order needs to be distinguished and cannot be relied upon by us; (j) in Order No. 1947/96, dated 9-10-1996, in this very case, wherein this Tribunal had remanded the matter to ld. Commissioner for de novo consideration, it has been observed as under on Page 5 : "If all second-hand machineries are to be assessed based on the depreciation method then the valuation rules would lose their validity. B....