Case Law Details
India Potteries Ltd. Vs Commissioner of Customs (CESTAT Kolkata)
Introduction: The case of India Potteries Ltd. vs. Commissioner of Customs, as adjudicated by the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) Kolkata, revolves around the determination of the maximum allowable depreciation on imported second-hand machinery. This article provides a detailed analysis of the case and its implications.
Detailed Analysis:
Background of the Case: In 2010, India Potteries Ltd. imported a second-hand machinery, specifically a “NETZSCH, DE-AIRING PUGMILL MODEL V35 COMPLETE WITH NECESSARY ELECTRICAL PANEL, SWITCH,” from Germany. The declared value of the machinery was Euro 15,506. However, the Customs Department proposed to enhance this value to Euro 28,280, leading to the imposition of differential duty.
Chartered Engineer’s Certificate: Crucial to this case was the Chartered Engineer’s Certificate dated 28/07/2010, which certified that the gross value of the machinery as new would be Euro 84,500, and if old machinery is purchased, the value of overhauling would be Euro 7,000.
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