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TMI Blog1997 (3) TMI 293X X X X Extracts X X X X X X X X Extracts X X X X ..... [Order per : Justice U.L. Bhat, President]. - The purchaser of ship for ship breaking purposes has filed this appeal challenging the order passed by the Collector (Appeals) confirming the order passed by the Assistant Collector of Customs and Central Excise, Bhavnagar directing weight of the ship to be for the purpose of customs duty determined based on the Trim and Stability Book of the vessel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as Rs. 1,92,63,076/-. The Collector (Appeals) set aside the order remanding the case to the Assistant Collector who thereafter passed another order similar to the one which had been set aside earlier. Appeal filed before the Collector having been dismissed, the present appeal has been filed. 3. There is no dispute that the LDT of the ship as recorded in the Stability Book is 13,759.34 MTs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns that the lower authority had not accepted the plea of the appellant based on the report. Learned Counsel did not canvass acceptance of the weight loss suggested by the surveyor. 5. The activity of the breaking of ship is an excisable activity under the Central Excise Act, 1944. The scraps of the ship after breaking were cleared on payment of excise duty. There is no dispute that the physi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eaking up. Rate of duty is 40% plus Rs. 1,400/- per Light Displacement Tonnage. Chapter Note 2 in Chapter 89 incorporated with effect from 29-2-1988 states that in Heading No. 89.08 "Light Displacement Tonnage (LDT)" means LDT in metric tonnes as per Builder's Register LDT referred to in the Stability Book or the builder's certificate at the time of initial commissioning of the vessel or the float ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in the absence of other reliable data, we feel that the weight recorded in the LDT less 20% should be accepted as the weight of the ship on the date of clearance. Adopting this formula the weight would be 11007 MTs. 8. For the reasons indicated above, we modify the impugned orders, determining the weight for the purpose of imposition of customs duty as 11007 MTs. and the duty element will ..... X X X X Extracts X X X X X X X X Extracts X X X X
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