ORDER
N.K. Bajpai, Member (T)
1. The appellant who was posted as First Secretary in the Embassy of India, Kabul purchased a second-hand Mercedez Benz Car (1975 Model) from the Embassy of Bulgaria, Kabul on 12-11-1985 for a price of US $ 4500. On his return to India in 1988, the Customs authorities at Air Cargo Complex, New Delhi did not accept the price at which the appellant had purchased the car, but valued it at Rs. 53,566/- and its accessories at Rs. 3689/- for the purpose of assessment of duty. On rejection of his appeal by the Collector of Customs (Appeals), New Delhi, he has, in his appeal before us, taken the plea that if his original request is not acceptable, the price of the car should be worked-out on the basis of the price indicated in the World Car Catalogue which, according to him, for his model of the Car is DM 16539. The prices indicated with an asterisk mark in this Catalogue are inclusive of Value Added Tax (VAT). According to two letters dated 16-5-1989 and 23-5-1989 from the Assistant Collector of Customs (New Delhi) addressed to Shri B.J. Singh, of CII/73 Moti Bagh, New Delhi, it has been stated that the practice followed in the Delhi Custom House for assessment of cars is to take the ex-factory price as given in the World Car Catalogue and to allow a deduction of 15% on account of trade discount from such price, and thereafter, to allow a deduction on account of VAT wherever the price of the car is indicated with an asterisk mark. It has been stated in the letter dated 23-5-1989 that the then existing rate of VAT in case of West Germany was 14%. The appellant has prayed that the car imported may be re-assessed to duty on the basis indicated herein with such consequential relief as may be admissible to him. So far as deduction on account of VAT is concerned, a copy of Tribunal’s Order No. 560/1988-A dated 21st November, 1988 permitting deduction on account of VAT has been placed before us.
2. Shri N.C. Sogani, the learned Consultant for the appellants, requested that since the Delhi Custom House had confirmed that it was accepting the ex-factory price indicated in the World Car Catalogue and was permitting deduction of 15% on account of trade discount from such price as also a deduction on account of VAT, there was no reason why the appellant’s car should not be re-assessed to duty in terms of this practice. Shri Prabhat Kumar, learned Departmental Representative did not object to deduction on account of VAT, but stated that the rate of VAT prevalent in 1975 was not known.
3. We have considered the submissions and perused the records of the case. We accept the prayer of the appellant for re-assessment of his car in accordance with the practice of the Delhi Custom House to take the ex-factory price given in the World Car Catalogue and allow the deductions account of trade discount and VAT. The appeal is accordingly allowed and the order of assessment of the lower authorities is set aside with consequential relief, if any.