TaxTMI 
TaxTMI 
2011 (6) TMI 574
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....The importer preferred an appeal before Commissioner of Customs (Appeals), Ahmedabad. The Commissioner (Appeal) vide Order-in-Appeal No. 12/2003 dated 19-2-2003 dismissed the appeal holding that the appeal is against assessment of Bill of Entry, the appellant may seek on appealable order or may file refund claim. 3. Being aggrieved by the said OIA, the importer preferred an appeal before the Hon'ble CESTAT, New Delhi. The Hon'ble CESTAT, New Delhi vide Order No. 292/03-B dated 24-4-2003 [2003 (156) E.L.T. 977 (Tribunal)] remanded the matter to the Commissioner (A) for deciding the matter on merit after affording the reasonable opportunity of being heard. 4. The Commissioner of Customs (A), Ahmedabad vide his Order No. 156/2003(56-JMN), dated 25-7-2003 rejected the appeal of the importer holding that (1) duty on foodstuff and provisions are to be levied (2) levy of duty on bunker/fuel and oil, the importer has not shown conclusively the quantity of fuel and oil which was kept in engine room, thus the CESTAT's Order reported at 2003 (151) E.L.T. 636 (Tri.- Del.), would not be applicable to the importer's case, (3) issue regarding abatement of value in respect of li....
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.... (b) Duty on fuel and oil levied correctly in terms of Board's Circular No. 37/96-Cus., dated 3-7-1996. (c) Duty on foodstuff and consumable stores under Section 87 of Customs Act, 1962 is not to be exempted on the vessels imported for demolition as it lost the character of foreign going vessel, the moment it is imported. (d) Abatement in value of the vessel, corresponding the value of the prohibited goods like cigarettes and liquor surrendered to the Customs authority, is not to be allowed while arriving at the assessable value of the vessel. The appeal against above order did not find favour with the Commissioner (Appeals). Hence, the present appeal. 10. It is seen that the following were the issues before the adjudicating authority for decisions : (i) Whether a new levy @ 4% SAD in terms of Notification No. 56/98-Cus., dated 1-8-1998 as amended by Notification No. 28/99-Cus., dated 28-2-1999 is to be levied on the vessels imported for demolition or otherwise; (ii) Whether duty on fuel and oil declared in the Engine Room tanks is to be ....
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....y duty. Central Board of Excise and Customs, Delhi, in this scenario, referred the matter to the World Customs Organization Brussels. World Customs Organization Brussels have given the classification of the same items. The Board in terms of WCO's advice issued the Circular No. 37/96-Cus., dated 3-7-1996 and classified the items imported on board the vessel for demolition. The relevant paras of Board's said circular is reproduced below for easy facilitation. "(b) Fuel and oil contained in the vessel's machinery and engines can also be regarded as forming integral part of the vessel and hence be classified under Heading 8908. (d) Remaining fuel and oil (other than that mentioned in sub-para (b) above and other ship stores, including drinks and foodstuff are classifiable separately in their own appropriate headings. It is thus, clear that the fuel and oil, which have been assessed to duty under the Chapter Heading 27.10 were in tanks and were not contained in the vessel's machinery and engines. Hence, they have to be classified under Chapter Heading 2710 as "remaining fuel and oil" as per paragraph (d) of Circular No. 37/96-Cus., dated 3-7-1996." (d) &nbs....
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....officers and crew personal effect and belongings Master's slope chest and the deck & engine log books also the items and exclusions if any will be advised later on and hired items removals to be excluded from the sale. The bonded items surrendered to the Customs authority is part and parcel of the Master's slope chest and the said items have been excluded from sale. Naturally when the items are excluded from the sales and accordingly they are excluded from the consideration. Under the circumstances, the importer has not made any payment with reference to these items the abatement of the value is thus not allowable. 12. Ld. Advocate Shri A.D. Maru, appearing for the appellant submits that the ship imported by the appellant was old and unserviceable ship and as such, the same cannot be considered to be a ship but the same was re-rollable scrap in the shape of ship. As such, the appellants having purchased the scrap and having sold the same as such, the exemption of SAD denied to them, was not proper. He draws our attention to Bombay High Court decision in the case of Commissioner of Sales Tax, Maharashtra State v. Delhi Iron & Steel Co. Pvt. Ltd. - 1995 (98) Sales Tax Cases-2....