TaxTMI 
TaxTMI 
TaxTMI 
1989 (10) TMI 135
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....ption on its clearance for ship breaking. The Collector of Customs, Calcutta is aggrieved by this order and has preferred the present appeal. The facts in brief are that the respondents herein in a letter dated 9-5-1983 requested the Custom House for issue of a No Objection for dismantling and duty-free clearance of the vessel M.V. Jaladharma on the ground that the vessel having been imported in 1957 would not fall under the purview of conditional exemption Notification 262/58, dated 11-10-1958. The department, on enquiry, found that the subject vessel arrived at Bombay on 4-5-1957 for which IGM was submitted on 6-5-1957 and the department thereupon informed the respondents by a letter dated 26-3-1983 that the vessel would not be exempted f....
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.... and would not, therefore, be applicable to the vessel sought to be cleared by the respondents. On the other hand, at the relevant time of importation of the vessel, there was an un-conditional exemption for Customs duty on Ocean going vessels by virtue of Government's direction dated 21-6-1923. The Collector (Appeals) therefore, allowed the appeal holding that the vessel was not liable to payment of Customs duty. 2. The Learned SDR, Shri K.D. Tayal, appearing for the Appellant Collector submitted that in this case, no doubt, when the vessel was first imported for the time at Bombay by M/s. Scindia Steam Navigation Co. in 1957, it was eligible for the exemption which was available un-conditionally to all Ocean going vessels by the Central ....
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.... thereon. 3. Shri S.P. Mittal, the learned counsel appearing for the respondents pointed out that the department's case is that each time, the vessel undertook journeys outside India and returned, it constitute an act of import. This view has been rejected by the Hon'ble Bombay High Court in the case of M/s. Jalyan Udyog v. Union of India -1987 (13) E.C.R. 1149, wherein the High Court held that Ocean going ships leaving the territorial waters of India do not become exports and that their original date of import would not be affected. The learned counsel further pointed out that Notification 262/58 was inapplicable because the vessel had been imported into India prior to the issue of that notification and at that time, there was an un-condi....
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....lting in the vessel being arrested by the Hon'ble High Court at Calcutta under admiralty jurisdiction on July, 1982. The Court granted leave to the Calcutta Port Trust for sale by tenders and the respondent was the highest bidder and thus became to be the purchaser of the vessel. Thereafter, he ought clearance of the vessel without duty from the Customs. The main ground for the Customs department's case is that although the initial import of the vessel was as an Ocean going vessel subject to exemption, yet the vessel had performed many voyages in its career as an Ocean going vessel and each time it came to India from abroad, there was a fresh import and the vessel became dutiable goods and when it came to India for the last time for subsequ....
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....he year 1968 and merely because the ships thereafter left the territorial waters of India, the ships being ocean going vessels, it cannot lead to the conclusion that the ships were exported. The predominant intention of Shipping Corporation of India was to use the ships as ocean going vessels and not to export them. It is therefore, not possible to accept the contention that the vessels on every occasion when they left the territorial waters of India should be treated as having been exported". Therefore, the department's contention that the provisions of Notification 262/58 would be applicable due to the frequent voyages of the vessel as an ocean going vessel is not sustainable. In this view of the matter, what remains is the liability to ....