Separate classification of vessel bunkers and stores upheld, sustaining differential customs duty on ship-breaking imports.

Imported fuel oil, engine oil, ship stores, spare parts and food stuffs brought with vessels for ship-breaking were required to be classified separately on the basis of the vessel manifest and the applicable customs circular. The importer's argument that the Department had not established import and clearance through the customs barrier was rejected, as the record supported the treatment of the bunkers and stores as distinct goods. The demand for separate classification and differential duty was upheld, and the importer's challenge failed.

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Issues: Whether the imported fuel oil, engine oil, ship stores, spare parts and food stuffs were required to be classified separately and subjected to differential duty on the basis of the vessel manifest and the applicable customs circular.

Analysis: The importer had brought vessels for ship-breaking. The adjudicating authority treated the bunkers and stores as goods falling for separate classification and demanded differential duty. The appellate authority relied on the statutory manifest declared by the master of the vessel and the customs circular dealing with such imports. On the record, the claim that the Department had failed to establish import and clearance through the customs barrier was not accepted.

Conclusion: The demand for separate classification and differential duty was upheld and the challenge by the importer failed.

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