TaxTMI 
TaxTMI 
1996 (3) TMI 229
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....e order of Hon'ble High Court of Bombay in Adm. Suit 18 of 1985. Upon purchase of vessel `M.V. SEA FALCON-I' for "Breaking and scrapping", the appellants had approached Asstt. Collector of Customs J. Group Bombay for clearance of said `M.V. SEA FALCON-I' for Breaking/ Scrapping. Inventorisation of Moveable Gears/Stores and other available items was ordered by Asstt. Collector of Customs J. Group, through preventive supervision of Customs Department. Home consumption Bill of Entry was presented back to appraising department by importers Clearing Agent M/s. Pandurang Bhagwan Bombay C.H.A. No. 11/0105 alongwith a letter dated 24-1-1996 from the appellant. The appellant had also submitted seven documents pertaining to the tenders that had been challenged in the said Suit by the Sheriff of Bombay and also the payments made by them in full and final payment to the Sheriff of Bombay High Court towards the tender purchase price of Rs. 80,30,000/-. He had also produced documents from M.S.T.C.'s declaration by canalising agency with an authority for Customs clearance directly. They had also produced P.O.'s inventory for moveable gears and stores, Marine Survey Report of M/s. Metcalf & Hodk....
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....in their opinion, machinery which will fetch a good price will have to be scrapped. The said vessels are available at cheaper international price than the vessel which are delivered on their own power. The appellant had pointed out that price of vessel delivered under own power and price of vessel for delivery in its laid-up condition will be different. They also relied on the order of the Writ Petition 722 of 1986 passed by Bombay High Court had directed the Customs to assess the International C.I.F. value of the vessel "M.V. SEA FALCON-I" by physical Survey of the vessel through a Govt. Recognised Marine/Vessel, Surveyor and Valuer and complete assessment on or before 9-4-1986. In pursuance of Hon'ble High Court's order dated 3-4-1986 Customs had asked the appellant to get physical survey of vessel through Capt. J.B. Sawant. In his report dated 14-4-1986, Shri Sawant on physical survey report in respect of M.V. SEA FALCON-I, has observed that valuation made by him is on "as is where is basis and in vessel's dead and laid-up condition". The ld. Collector has observed that the said report lacks in giving full details of all missing parts, corroded and rusted parts, parts which are ....
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....espect to bid value of Rs. 80,30,000/- Surveyor J.B. Sawant in his survey reports has not in detail set out the value of each items presumed to be missing or details of items missing due to pilferage/theft. Capt. J.B. Sawant has also referred to the order of Bombay High Court dated 1-3-1986 in admirality Suit No. 18 of 1985 in his Survey Report and has arrived at the value of missing articles as Rs. 7,00,000/-. Capt. Sawant has not specifically mentioned whether the value of stolen material is international value or otherwise. Now, since the Bombay High Court has certified the value of missing materials as Rs. 7,05,000/- vis-a-vis bid price of Rs. 80,30,000/- (Rupees eighty lakhs thirty thousand) the international value of missing parts is to be worked out proportionately by treating valuation of missing material given by Capt. J.B. Sawant as if on the basis of bid value. In admirality Suit No. 18 of 1985. Therefore, I order that the vessel M.V. SEA FALICON-I be assessed in pursuance of Hon'ble High Court of Bombay, Order dated 3-4-1986 in the W.P. No. 722 of 1986 and also in light of the Survey report and discussions of the undersigned with the Surveyor Capt. Sawant appointed for....
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....ority has not given any legal reasoning as to why the remission of duty is allowed only upto the value of Rs. 4,90,642/-, whereas in the impugned order, stores stolen of Rs. 7,05,000/- have been confirmed. Accordingly, I admit the appeal only to the extent that remission of duty may be allowed on the loss of the goods, value of which is Rs. 7,05,000/-". 2. We have heard the appellant's representative and Shri Vipin Handa, ld. SDR for the Revenue. 3. At the outset, ld. Representative submitted that the value of US $ 96/- per LDT assessed by the Asstt. Collector has not been challenged by them. Survey Report has stated that for reconditioning the vessel of Rs. 20 lakhs is required to be spent and therefore, the department should have reassessed the value of the vessel by taking into consideration the Survey report of Capt. J.B. Sawant. It is his submission that non-consideration of this survey report in terms of the High Court Order has made the impugned order unsustainable. It is stated that although MSTC's letter dated 17-1-1986 also mentions that the International Price of similar vessels for delivery under their power is fixed at US $ 96/- per LDT. It is their content....