2005 (7) TMI 413

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..... . The issue is leviability of the additional duty of customs on the above four vessels. They claimed exemption from additional duty/countervailing duty on the strength of the exemption Notification No. 234/82-C.E., dated 1-11-82 which is meant for "ocean going vessels" at Sl. No. 32. The Commissioner (Appeals) in the impugned order has stated that the exemption is leviable only for 'ocean going vessels' and not for ocean going vessels intended to be broken up. Ship breaking is contemplated for a vessel, which in the opinion of the vessel owner has lost its seaworthiness. Conversely, the exemption in Notification No. 234/82 is contemplated for a vessel with its seaworthiness intact, and cannot be interpreted otherwise. Therefore, she has uph .....

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..... on activity that is nothing to do with the vessels which are imported. (iv)    The vessels have come by their own motive power. Hence it is not correct to say that they are not ocean going vessels. (v)     The Commissioner (Appeals) has violated the principles of natural justice for not furnishing the Bhav Nagar Customs report. (vi)    As per the Hon'ble High Court of Andhra Pradesh's judgment dated 6-12-2000, there is specific direction to refund an amount of Rs. 8,00,000/-. The Commissioner (Appeals) has disobeyed the orders of the High Court. (vii)   The learned Counsel relied on the following case laws :- (a)     Collector of Central Excise, Baroda v. V .....

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..... ne through the records of the case carefully. The point at issue is whether the vessels which were imported for breaking up are liable to pay countervailing duty. The Central Excise exemption in Sl. No. 32 of Notification No. 324/82 is for ocean going vessels. In our view the imported goods should be assessed in the form by which the importation takes place. What happens to the goods afterwards, may not be a criteria to assess them, unless the tariff specifically says so. 'Ocean going vessels' during the relevant period were exempted from excise duty by virtue of Notification No. 234/82. The vessels which were imported arrived at the port of importation by their own motive power. They might be very old and used. On that account we cannot sa .....

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