TaxTMI 
TaxTMI 
1999 (10) TMI 217
X X X X Extracts X X X X
X X X X Extracts X X X X
....acement Tonnage (L.D.T)" of such vessels. The definition of LDT reads as under : "Light Displacement Tonnage (LDT) means LDT in MTs as per builder's registered L.D.T. referred to in the Stability Book or the Builder's Certificate." 2.  They produced a certificate dated 29-6-1992 from American Bureau of shipping. The Certificate reads as follows : "This is to confirm that on the basis of documents already in our records, the light ship weight of the vessel after being converted in 1975 is 9,609.25 long tons without any ballast." 3. The Memorandum of agreement witnessing the purchase by the appellants described the price as US $ 176 per long tons of LDT, excluding permanent blast, in accordance with the certi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ri A.D. Maru, Adv. and Shri R.K. Ghadge, Consultant. We also heard Shri A. Ashokan, ld. JDR for the Revenue. 6. The single issue for determination in this case is whether in calculating the LDT of a vessel, the ballast has to be taken into account or not. 7. The term "Tonnage" in shipping industry is used in different contexts. Displacement tonnage of a vessel is the weight of water that the ship displaces. Loaded displacement tonnage is the weight of the vessel fully loaded with cargo, passengers, fuel, stores and crew. Light displacement tonnage is the weight of the vessel, without cargo, passengers, fuel, stores and crew. Deadweight tonnage (DWT) is the difference between light displacement tonnage and full displacement t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....dded to the ship to ensure stability while in motion. The need for ballast varies according to the types of ships. A cargo vessel will generally be stable, if it is fully laden. When it is not fully laden, it may need to take on board some ballast, to achieve the degree of stability required. The requirement of ballast would also vary according to the weather conditions. A passenger ship would generally carry ballast, as there would be no weighty cargo but only lightweight people. The quantum of ballast would thus, continuously be changing. 12. Trim and stability are conditions which indicate the requirement of ballast for the ship. If the ship has less cargo on one side than on the other side, to maintain the trim, some ballast has....
X X X X Extracts X X X X
X X X X Extracts X X X X
....not a universal phenomenon but occurs in a microscopic percentage of cases involving list when the ship is first put into water after construction. Such a rare event and occurrence cannot be a parameter determining fixed permanent values. The temporary ballast is an ever changing phenomenon and therefore, for the same reason cannot become an element of calculation, in determining normal values. 15. We have seen the expert opinions. That of the Mazgaon Docks Ltd. is cryptic and although it refers to some glossary notes and notifications it does not enclose any. The opinion of the Director General of Shipping is very clear. It also clarifies that ships generally are not designed and manufactured to have permanent ballast. It also spec....