2002 (12) TMI 431

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....ed that the appellants imported one old ship M.V. BORROVICHI; that they paid the customs duty of Rs. 50,52,210/-; that subsequently the Assistant Commissioner, under Adjudication Order No. 4/99, dated 30-3-99, dropped the demand on movable gears but confirmed the demand on bunker and food-stuff in terms of Board's Circular No. 37/96-Cus., dated 3-7-1996; that on appeal, the Commissioner (Appeals), under the impugned order dated 14-12-2001, rejected their appeal holding that the fuel kept in the engine room could not be treated as a part of engine and machinery and ship stores were classifiable separately in their own appropriate Heading of the Customs Tariff and not to be classified along with the ship. The learned Advocate, further, submit....

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....sessment of Bill of Entry was made on the M.T. of the ship whereas under Notification No. 87/90-Cus., dated 20-3-1990, the duty was to be assessed on LDT; that as such the assessment was wrong; that further the benefit of Notification No. 118/89-Cus., dated 1-3-1989 and Notification No. 169/89-Cus., dated 12-5-1989 was not given which may be allowed. 3. Countering the arguments, Shri Atul Dixit, learned SDR, submitted that the Appellants have never challenged the assessment of Bill of Entry and as such at this stage of their appeal before the Appellate Tribunal, they cannot challenge the assessment by claiming benefit of Notifications; that the present matter pertains to the assessment of oil and food-stuff only; that as per para 2(....

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.... of M/s. Bhikkamal Chhotelal v. Commissioner of Customs & Central Excise, Final Order Nos. 3602-05/2000-WZB/C-II, dated 7-12-2000. 4. We have considered the submissions of both the sides. As far as food-stuff is concerned, the provisions of Section 86 and 87 of the Customs Act are not attracted as the food-stuff in the present matter, cannot be treated as ship stores. The stores are not chargeable to duty under Section 87 only when these are consumed as stores, during the period vessel is a 'foreign going vessel'. As per Section 2(21) of the Customs Act, 'foreign going vessel' means any vessel for the time being engaged in the carriage of the goods or passenger between any port in India and any port outside India. The vessel or ship....