TaxTMI 
TaxTMI 
2008 (6) TMI 527
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....Mangolia Ace carrying 3929 cars of Japanese manufacture, was on its way from Colombo when it caught fire in the high seas off the Srilankan coast. The fire completely gutted the ship and destroyed the cargo. The ship along with cargo were towed by a tug to Alang Port on 4-1-1995. On 25-1-1995, the M/s ITC entered into a memorandum of agreement with Arihant Ship Breakers (Arihant for short) and sought permission to land cargo at Alang from the principal Collector of Customs, Baroda. Subsequently, in March, 1995, the vessel and the cargo were seized by Customs and after adjudication proceedings, the Commissioner of Customs confiscated the burnt/damaged cars and allowed them to be cleared on payment of redemption fine and confiscated the vesse....
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....ould be used as spare parts. This means that they were capable of being used as spare parts. Thus, if the burnt cars cannot be considered as cars , they cannot by the same token by directly considered as 'scrap'. (iii) Therefore, the goods being cars, even if burnt or damaged requires import licence as per Sr. No. 3 of part J for Miscellaneous items of Negative List or Imports under para 156 of Import and Export Policy Act, 1992-97. Para 29 of the Policy also restricts import of second hand goods. M/s ITC Global Holding Pvt. Ltd. brought the vessel knowing fully well that it had burnt and damaged cars on board which required import licence which they did not possess. Nor did they obtain Customs clearance permit after the ....