2024 (7) TMI 1410 - AT - Customs

Appeal on Customs Duty for Ship Oil Tanks Remanded for Reconsideration After Resolution in Precedent Case.

HARIYANA SHIP DEMOLITION PVT LTD AND HARIYANA SHIP BREAKERS LTD Versus C.C. -JAMNAGAR (PREV)

The appeal concerning Customs Duty on oil in tanks of a ship imported for dismantling was remanded to the adjudicating authority for further ... Levy of Customs Duty - oil contained in the tanks in the ship imported for breaking purposes - HELD THAT:- In the instant case the Order-In-Original speaks only about the tank contained within the engine room and there is no specific finding about any tank outside the engine room. In this context, the Tribunal in the case of Navyug Ship Breaking Co. [2022 (12) TMI 100 - CESTAT AHMEDABAD] becomes relevant where it was held that 'the Oil contained in Bunker Tanks outside the engine room of vessel, despite duty was paid under protest, there is , however, no speaking order passed as regards the same, It can be seen that if the tank containing oils are connected with pipeline with the engine or machinery of the vessel, there may be no reason why the same cannot be treated as integral part of the engine or machinery of the vessel. However, since there is not speaking order on that part of issue, we direct the adjudicating authority to pass speaking order in respect of duty pertaining to oil contained in Bunker Tacks outside the engine room of vessel.' The impugned orders are set aside and matter is remanded to the adjudicating authority to decide in terms of order in the case of Navyug Ship Breaking Co - Appeal allowed by way of remand. The appeal was filed against the demand for Customs Duty on oil in tanks in a ship imported for breaking purposes. No one appeared for the appellant. The issue was settled in a previous case, so the matter is remanded to the adjudicating authority for further decision. The impugned orders are set aside. The judgment was pronounced on 26.07.2024.