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TMI Blog2011 (10) TMI 450X X X X Extracts X X X X X X X X Extracts X X X X ..... arachi. The ship left Mumbai Port on 20-10-1988 for Karachi but the ship got grounded the next day near Veraval Port. The grounded ship was badly damaged due to fire, rough sea, rocky grounding position etc. The ship's bottom was broken and sea water entered into the ship. The cargo of rubber tyres, tubes and flaps was deteriorated due to sea water, diesel oil, weather conditions and also due to hazardous chemical which was also loaded into the ship. The shipper M/s. Atlantic Shipping Co., Mumbai abandoned the ship and voyage. The importer, i.e., Afghan National Bank (Pak) Ltd., Karachi made the payment of the said consignment to M/s. Modi Rubber and subsequently preferred to claim against the insurance company M/s. United India Insurance C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... snag and was diverted to India. It remained in the territorial waters of India for a period of ten months and thereafter the goods were salvaged and sold by the insurance company. As such it is the Revenue's contention that the goods were exported and the subsequent clearance was by filing bill of entry and they have to be considered to be re-imported goods and liable to pay duty. Accordingly, Show Cause Notice was issued to the appellant on 26-6-1991 for confirmation of Customs duty. The said Show Cause Notice was adjudicated by the original adjudicating authority vide which after giving discount of 10% on account of damage etc., demand of duty of Rs. 1,12,92,590/- was confirmed. 3. On an appeal against the above order, Commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y Commissioner (Appeals) that M/s. Modi Rubbers Ltd. as exporter of the goods, had availed all the benefits accrued to them under DEEC scheme on the technical ground that the vessel has crossed the Indian territory, the goods are held to have been exported. It stands further recorded by him that Show Cause Notice was issued to M/s. Modi Rubbers Ltd. but stands dropped after admitting the proof export on AR-4s for the said consignment. Accordingly, he held that inasmuch as there is no dispute that the goods were exported, returning of the ship to Indian territorial waters has to be held as re-import of the goods. The appellate authority has observed that goods re-imported are of different identity inasmuch as the same got damaged and are not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ill of entry was filed under pressure of revenue is unsubstantiated. There is nothing on record to show that the appellants were pressurized to file the bill of entry. As the appellant have cleared the goods after filing a bill of entry, it has to be held in the peculiar circumstances of the case that the damaged goods were imported requiring the appellant to pay customs duty. As such we find no reason to take a different view then the one taken by the authorities below. 7. As regards, the value of the goods, ld. Commissioner (Appeals) has held in favour of assessee by holding that the value at which goods were sold by the insurance company to the appellant has to be treated as the assessable value and the duty has to be re-quantified ..... X X X X Extracts X X X X X X X X Extracts X X X X
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