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M/S Arani Agro Oil Industries Ltd. vs Commissioner Of Customs Visakhapatnam on 3 January, 2019

Hence, we are of the view that redetermination of the declared value of the imported second hand machinery by rejecting the declared value is clearly untenable because from a reading of both the Order-in- Original as well as Order-in-Appeal, it is clear that what is rejected is only the declared value and not the local Chartered Engineer's certificate. Hence, we are of the view that the redetermination of declared value based solely on local Chartered Engineer's certificate is not in order and in this regard, our view stands supported by the decision/order 9 relied upon by the Appellant in the case of Mech. And Tech. Vs Commissioner - 2009 (247) ELT 305 (Tri.-Chennai) which decision/order has been applied by this very Bench in the case of Barani Industries Vs Commissioner of Customs - 2025 (10) TMI 829-CESTAT Chennai. To our minds, the purpose of Board's circular issued in 2008 was perhaps due to the practice in vogue at that relevant point in time that there were perhaps imports of new machinery / equipments, etc. in the guise of used / second hand machinery / equipments, which required strict examination. This perhaps mandated the obtaining of Load Port certificate that would include all materials particulars of the goods in question mainly indicates the year of manufacture, etc. In today's advanced technology, perhaps the said circular requires a re-look. We have perused the Load Port certificate which contains all materials particulars of the items in question and the crucial aspect that the said goods were used / second hand stands established. Hence, as long as all the particulars of the used machinery is concerned, are available in the said Load Port certificate and the same also does not indicate that the items in question are hazardous in nature, the item in question also has a life span of some years including an approximation as to the present market 10 value, the same should serve the purpose. A small information which may not essentially dislodge the very nature of the goods imported, cannot be fatal to the extent of disbelieving the said Load Port certificate. In view of the above, we do not find any justifiable reasons to accept the redetermination of declared value and hence, the impugned order cannot sustain.
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