2015 (10) TMI 207

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....ng anchorage for the purpose of breaking under the agency of M/s. Shreeji Shipping Agency, Bhavnagar. M/s. Shreeji Shipping Agency filed Import General Manifest (IGM) on behalf of the Master of the said vessel and submitted various declarations as envisaged under Section 30 of the Customs Act, 1962 read with Import General Manifest (Vessels) Regulations, 1971. The appellant, as per agreement dated 23.6.2005 filed bill of entry SBY/48/2005-2006 dated 23.6.2005, which is provisionally assessed to duty of Rs. 7,40,00,574/-, deposited by the appellant on 15.07.2005. On 23.7.2005 and 25.7.2005 during rummaging of vessel, 34 boxes bearing marking 'Ships spares in Transit, containing some items were found in store at "PROMANADE DECK" and one Chimn....

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....per agreement dated 23.6.2005. He drew the attention of the Bench to the relevant portion of the agreement. It is revealed from the agreement that the terms and conditions of purchase are "As is Where is" basis. All stores and equipments lying in the vessel are included in the value. The value of ship spares and Chimney/funnel are already included in the price and they have paid the duty on the transaction value. So, the demand of duty can not be sustained. He relied upon the decision of the Hon'ble Supreme Court in the case of Commissioner of Customs (Prev.), Gujarat vs. Atam Manohar Ship Breakers Limited - 2009 (233) ELT 145 (S.C.) followed in the case of Chaudhary Ship Breakers vs. Commissioner of Customs, Ahmedabad - 2010 (259) ELT ....

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....IRREVOCABLE LETTER OF CREDIT NEGOTIABLE AT 270 DAYS FOR USD 7,406,000.00 (UNITED STATES DOLLAR'S SEVEN MILLION FOUR HUNDRED SIX THOUSAND ONLY) FROM THE DATE OF PHYSICAL DELIVERY OF THE VESSEL TO THE BUYERS. LETTER OF CREDIT TO BE ESTABLISHED LATEST BY 28TH JUNE, 2005 AS PER THIS MOA THROUGH ANY NATIONALISED BANK (HEREINAFTER CALLED THE OPENING BANK) FOR CONFIRMATION AND ADVISED TO "INDIAN OVERSEAS BANK, CENTRAL BRANCH, HONGKONG" (HEREINAFTER CALLED THE NEGOTIATING BANK) THE LETTER OF CREDIT SHALL HAVE AN EXPIRY DATE OF NOT EARLIER THAN 28.07.05, UNLESS EXTENSION OF DELIVERY DATE IS MUTUALLY AGREED UPON. THE LETTER OF CREDIT IS NEGOTIABLE IMMEDIATELY AFTER VESSEL HAS BEEN PHYSICALLY DELIVERED TO THE BUYERS OR THEIR AUTHORISED REPRESENTATIV....

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....NCIES OF ANY DESCRIPTION. ANY ADDITIONAL GENERATORS, ANCHOR, SPARE TAIL SHAFT, SPARE PROPELLOR/ BLADE, STORES, SPARES OR ANY OTHER EMERGENCY/ DECK GENERATOR THOUGH NOT MENTIONED IN THE MOA BUT FOUND ON BOARD THE VESSEL WILL BE BUYERS PROPERTY WITHOUT ANY EXTRA COST TO THEM. 07. TO 09. 10. THE VESSEL SHALL BE DELIVERED ON "AS IS WHERE IS" BASIS WITH WHATEVER AVAILABLE SPARES/ EQUIPMENT AND WITH REMOVALS IF ANY. 11. THE PHYSICAL DELIVERY OF THE VESSEL SHOULD BE MADE BY THE SELLERS TO THE BUYERS OR THEIR NOMINATED REPRESENTATIVES FOR DEMOLITION ONLY. 12. to 16. -.. 17. ALL STORES & EQUIPMENTS SUCH AS DECK GENERATORS/ SPARE TAIL SHAFT/ SPARE PROPELLOR/ SPARE BLADES/ ANCHORS & STORES ON BOARD LYING ANYWHERE IN THE VESSEL ARE INCLUDED IN THE....

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....ue at Rs. 21,53,453/-, which were not included in the assessable value as declared in the bill of entry. The adjudicating authority observed that there is difference between the size of dimension and the seized chimney/funnel and the one installed chimney/funnel and that the chimney/ funnel was a pre-fabricated structure of the aluminium. That if it has been fabricated as spare then the size and dimension of it would be the same as installed one. Regarding the 34 boxes of spares, it was clear from the expert opinion that they were used in the oil field, wherein the vessel in question was a passenger vessel and there is no reason to connect with the contents of the said boxes. Thus it is clear that these items were not part and parcel of the....