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2004 (63) RLT 208 (CESTAT-Mum.)
(In the Customs, Excise & Service
Tax Appellate Tribunal, Mumbai)
Present: Shri Gowri Shankar, Member (Technical)
Shri Krishna Kumar, Member (Judicial)
Versus
CCE, NASIK
(Final Order
No.C-II/49/WZB/2004 dt. 27.8.2003/6.1.2004
in Appeal No. C/350/2000-Mum.)
Assessable value – Customs- Section
14 of Customs Act, 1962 -Second hand machines- declared value enhanced by the
deptt. on the basis of Chartered Engineer’s certificate being lower than the value
that has been determined by accepting the Board’s circular dated 19-11-1987 has
to be confirmed. (Para
6)
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Para 6 : How then the valuation of the machine be determined? The Board’s Circular No. 493/1124/86-Cus.-III
dated 19.11.1987 provides guidelines for valuation of second hand machinery on
the basis of cost of manufacture, being reduced by depreciation the year of use
subject to the maximum of 70%. The depreciation of 70% is to be arrived at by
the end of seven years. The Additional Commissioner himself mentions that by
applying this criteria contained in the circular and valuing the goods by 30%
of the original value, a value higher than that cited in the chartered
engineer’s report will be arrived at.
The representative of the appellant agrees that the value given so arrived at,
based on depreciation from the cost of manufacture is acceptable. This being
the case therefore the value that has been determined in the impugned order,
being lower than the value that has been determining by accepting the Board’s
circular has to be confirmed.
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