SUPREME COURT OF INDIA

Before:- S.P. Bharucha, R.C. Lahoti and N. Santosh Hegde, JJ.

Civil Appeal No. 9150 of 1995, D/d. 2.12.1999.

Gajra Bevel Gears - Appellant

Versus

Collector of Customs, Bombay - Respondent

Customs Act, 1962, Section 14 - Second hand machines - Valuation thereof - Determination of value when the machine was new - Then scaling down price by allowing depreciation thereon - Such approach not amounting to an arbitrary method of ascertaining value of second hand machine.

[Para 1]

Cases Referred :-

Debabatra Ghosh v. Assistant Collector of Customs, (1993)68 ELT 551.

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.