2005 (7) TMI 413

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.... vessels for breaking up in the year 1983-84. The issue is leviability of the additional duty of customs on the above four vessels. They claimed exemption from additional duty/countervailing duty on the strength of the exemption Notification No. 234/82-C.E., dated 1-11-82 which is meant for "ocean going vessels" at Sl. No. 32. The Commissioner (Appeals) in the impugned order has stated that the exemption is leviable only for 'ocean going vessels' and not for ocean going vessels intended to be broken up. Ship breaking is contemplated for a vessel, which in the opinion of the vessel owner has lost its seaworthiness. Conversely, the exemption in Notification No. 234/82 is contemplated for a vessel with its seaworthiness intact, and cannot be i....

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....nly they are imported. Breaking up is a post-importation activity that is nothing to do with the vessels which are imported. (iv)    The vessels have come by their own motive power. Hence it is not correct to say that they are not ocean going vessels. (v)     The Commissioner (Appeals) has violated the principles of natural justice for not furnishing the Bhav Nagar Customs report. (vi)    As per the Hon'ble High Court of Andhra Pradesh's judgment dated 6-12-2000, there is specific direction to refund an amount of Rs. 8,00,000/-. The Commissioner (Appeals) has disobeyed the orders of the High Court. (vii)   The learned Counsel relied on the following case laws :- (a)&....