MOTOR INDUSTRIES CO. LTD. V. COMMISSIONER  2003 (157) E.L.T. A150 (S.C.)

 

Valuation (Customs) — Second-hand machinery — Depreciation method proper when market price not ascertainable

 

The Supreme Court Bench comprising Hon’ble Mrs. Justice Ruma Pal and Hon’ble Mr. Justice Mr. B.N. Srikrishna on 25-4-2003 disposed off the stay application I.A. No. 1 in Civil Appeal No. 7179 of 2002 filed by M/s. Motor Industries Co. Ltd. against the CEGAT Order No. 1118/2002, dated 1-10-2002 and reported in 2002 (149) E.L.T. 1070 (Tribunal) (Commissioner v. Motor Industries Co. Ltd.). While disposing of the stay application, the Supreme Court passed the following order :-

 

“The application for stay is disposed of by directing that all future imports will be subject to provisional assessment and such provisional assessment and all the past provisional assessments in respect of similar import will be subject to the outcome of this appeal.”

 

The Appellate Tribunal in its impugned order by a majority decision had held that when the market price of the second-hand machinery was not ascertainable, the determination of assessable value under Rule 8 of Customs (Valuation) Rules, 1988 by depreciation method i.e. accepting CIF value of new machinery stated in Chartered Engineer’s certificate produced by importers and allowing depreciation thereon, was proper.

[Motor Industries Co. Ltd. v. Commissioner - 2003 (157) E.L.T. A150 (S.C.)]