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2013 (1) TMI 416 - AT - CustomsCustom Duty on vessel - Ocean going vessel – Breaking up of vessel - Excise duty was paid when vessel was built in 1975 and cleared - The appellant had purchased the vessel in an auction in 1993 - on “as is where is” basis - Whether the vessel should be assessed and levied to duty as the vessel imported for breaking up or not – Vessel has to be considered as of Indian origin or imported - Question of payment of customs duties at the time of breaking up does arise – Notification No. 162/65 - Notification No. 133/87-Cus Held that:- Following the decision in case of JALYAN UDYOG (1993 (9) TMI 108 - SUPREME COURT OF INDIA) considered the exemption Notification No. 162/65 and observed - “the principle of the notification is “no duty on import of such vessels but when after plying for a number of years, they are scrapped, pay duty on the supposition that it is imported for breaking-up on the date it is broken-up”. (date of grant of permission for breaking up, for DG shipping). The notification shifts the date of import in the case of a ship which is imported as an ocean going vessel but subsequently broken up - from the actual date of import to the date of breaking up by creating a legal fiction. The vessel is an Indian origin and therefore cannot be levied to duty at the time of breaking up cannot be accepted. Section 2(25) of the Act when the vessel was purchased by the appellant, importation had not taken place. Importation took place subsequently when the appellant decided to beach the vessel and took permission for the same. Beaching the vessel was for the purpose of breaking it up. Therefore the appellant was advised to file a bill of entry which he filed and this series of events would show clearly that appellant was the owner as well as the importer at the time of filing bill of entry. Therefore appellant has to be held as the importer. In favour of revenue
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