2004 (10) TMI 487

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....se appeals have been filed by Revenue and facts herein, have been taken from the case C 209 for reference. The facts in brief are, the respondents presented Bills of Entry on 11-9-2004 for clearance of a vessel imported for breaking at port Alang district Bavnagar Gujarat. Value for duty purpose was declared at US $ 7,465.55 L.T. @ US $ 167.00/LDT on the basis of a MOA dated 5-9-2000 with M/s. Cane Shipping and Trading S.A. Liberia they (hereinafter referred, to second MOA) & the Respondents. The Respondents importers bill was assessed finally on 15-10-2001. The Revenue filed an appeal to Commissioner (Appeals) Customs Ahmedabad to consider the purchase price of the vessel as US $ 12,80,341.80 for 7,465.55 L.T. @ US $ 171.50/L.T. as per MOA....

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.... of 7585 MT - 7465.55 LT................with all her available outfit anchor and chains............Excluding master, officers and crews personal effects company log books, stationery forms................And items stated in Clause 13 hereunder at port official outer anchorage at west coast India (Alang)................... Further, as per clause 3 of the said MOA read as : "The vessel shall be physically delivered 'AS IS WHERE IS' and taken over safely afloat, substantially intact, under her own power free of cargo, free of charter, free of fire damage, free of permanent ballast, with all holds empty and hatches closed. No removals except as stated hereunder in clause 13 with main engine/all generators in working condition at port of d....

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....000 entered into between M/s. Wild Shipping Ltd. and M/s. Cane Shipping and Trading S.A. shows the vessel description as under : 20. The vessel is described as follows : NAME OF VESSEL : MV PRIME EX-NAMES: PERCA 1, ORCA, LENINSK, LITA :   TYPE OF VESSEL : BULK CARRIER DEAD WEIGHT : 34995 MT BUILT : 1975, ASTILLEROS ESPANOLES SA, FACTORIA DE SEVILLA, SPAIN :   FLAG : MALTA PORT OF REGISTRY : VALLETTA GT/NT : 19309/11429 LENGTH : 185.93 M BREADTH : 24.20M DEPTH : 15.20 M MAIN ENGINE : ONE, MANISES-SULZER-SPAIN, DIESEL ENG NO. (310) MODEL : 7RND68, REVOLUTION PER MIN 150, BHP11550 AESA SULZER GENERATING ....

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.... FORE PEAK/AFT PEAK/DOUBLE BOTTOM TOPSIDE, ALTHOUGH TO THE BEST OF THE SELLERS KNOWLEDGE THE BALLAST TANKS ABOVE WERE INITIALLY COATED. THE SELLERS HAVE NO EVIDENCE OF THE SAME AND CAN GIVE NO GUARANTEE. AS TO WHETHER THERE ARE ANY TRACES OR VISIBLE SIGNS OF COATINGS (S) LEFT LAST CARGOES : BULK BARLEY, COAL, ROCK PHOSPHATE, BAGGED RICE, WHEAT IN BULK, YELLOW CORN, SBM + SORGHUMS.  (e)     On a combined reading of the two MOAs it is seen there was no change found in the vessel, for sale by the MOA. Hence transaction value of US dollars which was offered of sale delivery Alang India as per the said first MOA dated 17-8-2000 should be a assessable value declared by the respondents was not tenable.....