Per Shri V.K. Ashtana :

This is an appeal against Order-in-Original No. 134/97-CAU dated 09.09.97 by Commissioner of Customs, wherein the declared value of 4 second hand machines (Autoconers) supported by a Chartered Engineer's Certificate from the country of export, has been rejected and they are re-valued under Rule 8 of Customs Valuation Rules on the basis of the price of similar new machines by their German manufacturer with 70% depreciation on usage etc. A differential duty of Rs. 12,41,985/- has been confirmed, but no fine or penalty imposed.

2. The importer has also produced two more certificates from local experts on values declared - one from a chartered engineer and the other from an engineering college faculty. They argue that as their declared transaction value has neither been rejected on basis of contemporaneous imports of like goods nor on relationship or fraud, therefore, Rule 4 and not Rule 8 ibid should be applied.

3. Heard learned Advocate Shri V. Ramanujam for appellants. Reiterating grounds of appeal, he cited the following decisions:

i) 1996 (17) RLT 113 (T) = 1996 (67) ECR 319 (Tri.) Indo Swiss

ii) 1997 (69) ECR 255 (S.C.) CC Vs. Nippon Bearings

iii) 1997 (96)