ORDER

1. The appellant filed Bill of Entry No. 337431 dated 18-7-2001 covering one second-hand automatic transfer honing machine with three honing stations. The declared value of the said goods was DM 150,000 equivalent to Rs 31,12,500 which was cleared on the basis of supplier's (Robert Bosch GMBH Germany) Invoice No. W47408 dated 7-6-2001. Accordingly, on the declared assessable value of Rs 40,88,835 in CIF terms (based on the invoice value) assessment was sought by the assessee under Sub-Heading 8460.40 @ 25% basic customs duty with CVD @ 16% (8460.00) and SAD 4%.

2. The authority-in-original viz. the Deputy Commissioner of Customs, rejected the declared value/transaction value by observing thus:

"... Hence the foremost requirement for accepting the transaction value/invoice price under Section 4(1) that it should be the price at which such or like goods are ordinarily sold or offered for sale, is not fulfilled in this case."

3. The authority-in-original then proceeded to examine the applicability of Rules 5 to 8 sequentially in order to determine the transaction value/assessable value of the goods and determined the assessable vatue at Rs 1,35,90,307.54 in FOB terms in terms of R