1996 (8) TMI 126

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....overed in favour of the Customs authorities by the judgment of a bench of two learned Judges of this Court, in Chowgule & Co. Private Limited etc. v. Union of India & Ors. - 1987 (27) E.L.T. 39 (S.C.) = 1967 (2) S.C.R. 351, but for the argument advanced on behalf of the owners of the transhippers that the judgment requires reconsideration. 2. The Division Bench said : "The further question i....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rgo from one Indian port to another or some times to foreign ports, necessarily going out on the high seas. They are structural and technically competent to go on the high seas and they have been certified to be so competent by appropriate maritime authorities. Instead of remaining idle and getting rusty, during off-season, that is when because of inclement monsoon weather topping up operations ca....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... term `ocean going vessel' or `sea going vessel' was a term of art whose meaning was clear and well-known. The Court had recognised the fact that the transhippers were ocean-going vessels in that sense, but had declined to give them the benefit of the notification that exempted ocean going vessels from Customs duty upon the basis that their dominant purpose was not for ocean going. Learned counsel....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s authorities submitted, on the other hand, that the phrase ocean going vessel itself took into account the end purpose. In other words, the exemption notification applied to vessels which actually went out into the ocean. He submitted that, therefore, the test laid down in the two judgments cited above was met. 5. In our view, there is, prima facie, merit in the submissions on behalf of the ow....