[Collector v. Rishi Gases (P) Ltd. – 2002 (144) E.L.T. A213  (S.C)]

 

Valuation (Customs) — Goods imported sufficiently old, damaged and second-hand — Depreciation permissible on initial cost value of machinery and not on estimated or on market value of goods  (2)            Import — OGL — Goods imported being components of a Plant (Air Separation Plant), covered by OGL under Appendix 10, Srl. 1 of ITC Policy 1982-83

 

The Supreme Court Bench comprising Hon’ble Mr. Justice B.N.     Kirpal, Hon’ble Mr. Justice N. Santosh Hegde and Hon’ble Mr. Justice Ashok Bhan on 10-10-2001 dismissed the Civil Appeal No. 2509 of 1992 filed by Collector of Customs, Calcutta, against the CEGAT Order No. 606/91-A, dated 16-6-1991 and reported in 1992 (60) E.L.T. 273 (Tribunal) [Rishi Gases (P) Ltd. v. Collector]. While dismissing the appeal the Supreme Court passed the following order :-

“After hearing the Counsel for the parties, we see no reason to disagree with the findings of fact arrived at by the Tribunal. The appeal is dismissed.”

 

The Appellate Tribunal in its order in question had held that while determining the assessable value of the old, damage and second-hand imported goods, depreciation is permissible on initial cost of machinery and not on the estimate value or on market value of the goods.

 

The Appellate Tribunal also held that the goods imported being components of a Plant (Air Separation Plant) are covered by OGL under Appendix 10, Serial No. 1 of ITC Policy, 1982-83.

 

A report relating to the admission of Civil Appeal No. 2509 of 1992 was published in 1996 (84) E.L.T. A47 (S.C.).

 

 

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