- (1.) The appellant filed Bill of Entry No.337431 dated 18th July 2001 covering one second hand Automatic Transfer Honing Machine with three Honing stations. The declared value of the said goods was DM 150000 equivalent to Rs. 31,12,500/- which was cleared on the basis of supplier's (Robert Bosch GMBH Germany) invoice no.W47408 dated 07th June 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 Heading 8460.40 @ 25% basic customs duty with CVD @ 16% (8460.00) and SAD 4%.
(2.) The authority-in-original, viz., the Dy. 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 value at Rs. 1,35,90,307.54 in FOB terms in terms of Rule 8 of the Customs Valuation (Determination of Price of Imported Goods) Rules, 1988 [for short, 'the Rules'] which provides for the residual method of determining the assessable value.;