TaxTMI 
TaxTMI 
2011 (2) TMI 9
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.... consideration of Rs. 7,61,12,400/- and Central Excise duty at the rate of 1% was paid thereon. The vessel was registered as Indian vessel tonnage and flying an Indian flag. However, it ceased to ply and was grounded at Bedi Bunder, Jamnagar, in June 1986. On 16th October, 1992, an order was passed by the High Court of Judicature at Bombay in Admiralty suit at the instance of Union of India and the Shipping Credit and Investment Co. of India Ltd. for auction of the vessel on "as is where is" basis "free from all encumbrances and existing liens". 3. On 12th February, 1993, the vessel was auctioned and being the highest bidder, the appellant viz. M/s. Mustan Taherbhai purchased the vessel. The sale in favour of the appellant was confirmed by the High Court and in furtherance thereof, the possession of the ship was delivered on 4th March, 1993. Thereafter, on 10th May, 1993, on the direction of the Superintendent of Central Excise & Customs, the appellant filed a bill of entry claiming that the ship was an Indian built ship, and therefore, no customs duty was payable. On 12th May, 1993, the Superintendent of Central Excise, Jamnagar passed a provisional assessment order dema....
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.... a customs bonded warehouse are treated akin to goods manufactured in a foreign country, and when the vessel was taken out of the country for plying as foreign going vessel, and subsequently, the said vessel is brought back to India for breaking purposes, it amounts to re-import. 9. Aggrieved, the appellant preferred yet another application under Section 129(B)(2) of the Act for rectification of mistakes in the order of the Tribunal dated 13th April, 1999 on the ground that in Union of India Vs. Baijnath Melaram 1998 (97) ELT 27 (SC) , this Court had affirmed the Bombay High Court's decision wherein it was held that no customs duty was payable on vessels which are subject to breaking, if the said vessels had been manufactured in India. Vide order dated 8th October, 1999, the Tribunal dismissed the said application as well, holding that it had correctly relied on the decision of this Court in Jalyan Udyog (supra). 10.Still aggrieved, the appellant preferred C.A. No. 1998 of 2000 before this Court. Vide order dated 30th August, 2001, this Court, while remanding the matter back to the Tribunal, observed thus: "It appears from the judgment of the Tribunal that th....
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....substance in the submissions of Shri Doiphode, that a new case is being made out by the Revenue at the present stage. 14. It has been held by the Hon'ble Supreme Court that as far as facts are concerned, the Tribunal is the final authority and the Court would go into only the questions of law at the appeal stage. Therefore, the Tribunal would first record the correct facts and then in the factual perspective would locate and apply the relevant law. 15. When the fact is accepted that Notification 118/59-Cus. did not exist at the time of clearance of the vessel from the Shipyard, the persistent plea that the ship was manufactured in the warehouse and that it was manufactured in India and that it attracted excise duty alone need not be considered at all. Since on the date of such clearance, the notification in force was 113/83-Cus., the provisions thereof would apply and the duty would be payable in terms of the conditions in the said notification. 16. Since we have so held the question of the applicability of the High Court judgment in the case of Baijnath Melaram does not arise." 12.Hence, the present appeal. 13.Mr. Joseph Vellapally....
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....ed. Relying on the decision of this court in Hyderabad Industries Ltd. & Anr. Vs. Union of India & Ors. (1999) 5 SCC 15 , learned counsel urged that even if it is held that customs duty is payable in the instant case, no additional customs duty is leviable as excise duty had already been paid. 15.Per contra, Mr. Hairsh Chander, learned senior counsel appearing on behalf of the Revenue, while supporting the impugned judgment, contended that at the time of clearance of the ship, Notification No. 118/59-Cus was not in force, as the same had been superseded by Notification No. 163/65-Cus. At the time the appellant presented the bill of entry, however, Notification No. 133/87-Cus was in force, as rightly concluded by the Tribunal. 16.Learned counsel urged that when a ship is manufactured in a bonded warehouse, for all purposes, it is deemed to be manufactured in a foreign country, and by virtue of Notification No. 133/87-Cus, a legal fiction is created whereby when the ship manufactured in a bonded warehouse is brought to India for breaking purposes, it is deemed to be manufactured in a foreign country and appropriate duty has to be paid for clearance for ship breaki....