Additional customs duty on ship-breaking imports remains payable where the exemption notifications do not cover power-assisted cutting.

A ship imported into India for breaking up remained liable to additional customs duty because Notification No. 74/93-Cus. granted only concessional basic customs duty for vessels under Heading 89.08 and did not exempt additional duty. The alternative claim under Notification No. 167/86-C.E. also failed because that exemption applied only to goods manufactured without the aid of power, and the breaking and cutting operations used power. The exemption claim was rejected.

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Issues: Whether a ship imported into India for breaking up was entitled to exemption from additional customs duty, either under Notification No. 74/93-Cus. or under Notification No. 167/86-C.E.

Analysis: Notification No. 74/93-Cus. granted concessional basic customs duty on vessels for breaking up under Heading 89.08, but it did not grant any exemption from additional duty of customs. The claim under Notification No. 167/86-C.E. also failed because that exemption applied only to goods manufactured without the aid of power, and the record showed that power was used in the breaking and cutting of the ship. The earlier view relied upon by the importer was not applied, and the interpretation that a ship imported for breaking up remained liable to additional customs duty was preferred.

Conclusion: The ship imported for breaking up was liable to additional customs duty, and the exemption claim was rejected.

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