2000 (4) TMI 255

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..... [Order]. - The respondent to this appeal by the Collector M/s. JM Industries, who was and still is engaged in breaking up of ships at Alang ship breaking yard. The respondent purchased in 1986 a ship MV Neo Neo. The ship was provisionally assessed to duty in March, 1986 and duty finally assessed in December, 1989. It appears that breaking up of the ship was also delayed due to litigation a....

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....assessee appealed this order. The Collector (Appeals) noted that the assessee had filed a declaration under rule 57G in May, 1986. The Assistant Collector had also accepted this fact. But said, since the duty on scrap obtained by breaking up of ship was withdrawn by exemption notification 386/86 issued on 20-8-1986 and introduced only with effect from 1-3-1989, the assessee must be considered to h....

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....om that date onwards. The rules relating to Modvat credit did not contain any such provisions expressly, nor is it possible to read such a situation into the rules. The assessee was engaged in breaking up of the ship from 1986 till 1989 and filed a declaration for breaking up of the ship since 1986. Neither the nature of the input nor the nature of the final product had changed. The fact that for ....