Back
1999 Supreme(SC) 1421
SUPREME COURT OF INDIA
S.P. BHARUCHA, R.C. LAHOTI AND N. SANTOSH HEGDE, JJ.
Gajra Bevel Gears, Appellant
VERSUS
Collector of Customs, Bombay, Respondent.
Civil Appeal No. 9150 of 1995, D/- 2-12-1999.
The method of valuing imported second-hand goods by ascertaining their value when new and allowing depreciation is a permissible method of valuation.
Headnote:
Valuation - Customs - Summary
Fact of the Case:
The appellant relied on a judgment regarding the valuation of a second-hand machine imported by the appellant, based on the certificate produced by the appellant itself, and scaling down that price by giving depreciation.
Finding of the Court:
The court found that the method of valuing the second-hand machine by ascertaining its value when new and then allowing depreciation was not impermissible, as it was not an arbitrary method of valuation.
Issues: Valuation of imported second-hand machine
Ratio Decidendi: The court held that ascertaining the value of the second-hand machine imported by the appellant, when new, based on the certificate produced by the appellant itself, and scaling down that price by giving depreciation was a permissible method of valuation.
Final Decision: The appeal was dismissed with no order as to costs.
JUDGMENT :- We have heard learned counsel for the appellant and we do not find any reason to interfere. Learned counsel for the appellant relied upon the judgment of a learned single Judge of the High Court at Calcutta in Debabatra Ghosh v. Assistant Collector of Customs, (1993) 68 ELT 551. That was a case in which the auction price of a car bought in England was not accepted but the valuation was made by ascertaining the price of the car when new and then allowing depreciation. The learned Judge found this impermissible on the facts of that case, as we would have done, because the price of a second-hand car such as that involved in that case could easily have been ascertained by reference to popular magazines and publications relating to cars in England. There are no popular publications that would indicate the prices of machines. Therefore, ascertaining the value of the second hand machine imported by the appellants, when new, based on the certificate produced by the appellant itself, and scaling down that price by giving depreciation does not appear to be an arbitrary method of ascertaining its value.
2. The appeal is dismissed. No order as to costs.
Appeal dismissed.
FOR CITATION AIR 2000 SC 3497(1)
