SAMPURNA GRAPHICS (P) LTD. Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) THE appellant is aggrieved with the order of confiscation of second -hand machineries imported by them and enhancement of the value from US 22,247 to US 72,810 under Rule 8 of the Customs Valuation Rules, 1988 read with Section 14(1) of the Customs Act, 1962. However, the same has been granted redemption on payment of fine of Rs. 5 lakhs and penalty of Rs. 2 lakhs.

(2.) THE appellants were required to have obtained a specific licence in respect of second -hand capital goods which are more than 10 years old. As the same is a restricted item as per Para 5.3 of EXIM Policy 1997 -02 read with Para 5.4 of Handbook of Procedures, the value declared by them in the invoices and in the Bills of Entry was not accepted by the department. The same was referred to the Chartered Engineer who revised the value to US 45,000. After department furnished some evidence, the value was reworked out to US 70,010 after allowing the maximum depreciation of 70% permissible as per guidelines issued by CBEC in respect of valuation of second -hand machinery. The material furnished was valued at DM 5,00,000 by M/s. Heidelberg India Ltd. Based on this value, the value of Heidelberg Offset Press Model MOFPS 604081 was worked out. The appellants did not challenge the Chartered Engineer's reassessment of the impugned goods for the reason that the goods were required by them and nor they cleared the goods. They had also not cross -examined the Chartered Engineer not produced any evidence to show that the value is same as that of invoice value.

(3.) THE Commissioner has taken a view that value of second -hand machinery has to be taken as per the guidelines issued by CBEC, Government of India by depreciation method and he has distinguished the judgment cited by them. The findings recorded by the Commissioner in Paras 7 to 14 are reproduced herein below : -