The respondents ship owners wrote to the Customs Authorities repeatedly asserting that the public numberice aforesaid has numberapplication to them inasmuch as the said ships were imported long prior to the companystitution of the Metal Scrap Trading Corporation and the issuance of the public numberice aforesaid.
The mere fact that a berth was number available for it on the earlier occasion on account of which it had to leave the port and companye back, they said, is number material.
The substituted proviso reads thus Provided that the duty of Customs shall be levied on the vessel if it is broken up as if it were then imported to be broken up.
the Central Government substituted the proviso in the above said numberification.
The Bench directed 1985 2 ELT 644 Bom Writ Petition No.
West Asia Shipping Private Limited has number been served and that only the first respondent was served and was represented.
Their companytention was that the vessel had actually entered the territorial waters of India on July 11, 1981 and, therefore, that is the date of import of goods relevant for the rate of duty.
When these appeals came up for hearing, it was pointed out by the office that in Civil Appeal No.
The later Division Bench distinguished the decision in Jalyan Udyog1 and held in favour of the Union of India.
The vessel then left Bombay for Karachi for unloading other cargo intended for that port and then came back to Bombay on July 23, 1981.
F. No.
The customs authorities imposed duty on the import of edible oil 150 which was the rate prevailing on July 31, 1981.
West Asia Shipping Company Private Limited, a companypany incorporated in India.
ATTESTED sd sd M. REGE K. SRINIVASAN ASSTI7.
COLLECTOR OF CUSTOMS, COLLECTOR OF CUSTOMS CORRESP.
M S 1459/83 J Pt.
By a numberification dated October 16, 1965 Notification No.
DEPTT.BOMBAY BOMBAY A/1384.
For this purpose, the ship owners should approach the Customs Authorities for taking inventory of moveable gears and stores on the vessels and then a local invoice should be prepared.
No import duty was levied on the import of these ships in view of the aforesaid exemption numberification.
The last voyage undertaken by these ships was in February 1982.
In the year 1958, the Central Government issued a numberification exemption numberification being Notification No.
The case of the importers, however, was that the rate of duty should be the rate prevailing on July 11, 1981 when the vessel had actually arrived and registered in the port of Bombay.
They were registered in India in the same year as M.V. Vijay Jiwan and M.V. Vijay Vaibhav and were operated as oceangoing vessels till 1980, in which year they were sold to Vijaya Lines Private Limited.
So far as the factual aspect is companycerned, it would be sufficient if we refer to the facts in Jalyan Udyog1 The facts in the other appeals are substantially the same only the dates differ On April 24, 1968 the Chairman of the Shipping Corporation of India wrote to the Government of India seeking its permission to purchase two second hand ships for operating between India and the Gulf and other destinations as ocean going vessels passenger ships .
On September 12, 1984 the second respondent sold the said ships to the first respondent, M s Jalyan Udyog, a partnership firm registered under the Indian Partnership Act.
On March 1, 1984 the Collector of Customs, Bombay issued a public numberice prescribing the procedure for assessment of the value of Indian Flag Vessels meant for scrapping and other allied matters.
N S 1486/83 Pt.
The MSTC shall also issue a No Objection Certificate for the sale of Indian Flag Vessels by the ship owners to the prospective buyers subject to the following companyditions The ship owners shall be deemed to be the importers and the entire liability to pay the customs duty on the vessel shall rest sic Bills of Entry and undertake to companylect a sum representing the estimated amount of duty determined by the Customs Authorities in lieu of the customs duty leviable on the ship before affecting delivery of the vessel The owner shall deposit the sum companylected from the buyer with the Custom House on account of the ship sold After the sum companylected from the buyers has been deposited with the Custom House and an evidence to the effect produced to the MSTC, NOC will be issued by the MSTC for giving delivery of the vessel for scrapping and The Custom House thereafter shall assess the bill of entry and adjust the deposit already available with them towards the duty chargeable on the vessel and permit clearance.
On October 1, 1983 permission for scrapping was accorded.
14 of 1985, decided on April 22, 1987 that the value of the ships be assessed on the basis that the said ships were imported in the year 1968 for the purpose of breaking up and that the value of the ships be determined in accordance with Section 14 1 a of the Customs Act, 1962.
1104 of 1990 Union of India v. Ialyar Udyog the second respondent viz.,
The numberification read thus Exemption to ocean going vessels other than vessels imported to be broken up Ocean going vessels other than vessels imported to be broken up, are exempt from the payment of Customs duty leviable thereon.
262 Cus.
162 Cus.
Accordingly, the writ petitions were dismissed.
For this purpose, the ship owners will have to approach MSTC and obtain a certificate from them regarding the current import price of similar vessels imported by them.
Vijaya Lines operated them for sometime as ocean going vessels and then sold them in the year 1982 to the second respondent herein viz.,
The ship owners have to approach the MSTC and obtain a certificate from the Corporation with respect to the value of the ship proposed to be scrapped.
In substance they were a the respondents in the writ petition be directed to levy basic customs duty and auxiliary duty at the rate prevailing on and at the value at which the said two ships were purchased by the Shipping Corporation of India in August September, 1968 and number at the rate and on the value prevailing on the date of their scrapping breaking and b the requirements of obtaining the Valuation Certificate and a No Objection Certificate from the MSTC is number necessary in their case.
The Division Bench held that he said ships were imported in the year 1968 and number in the year 1983 or 1984 and, therefore, the value and the rate relevant for the purpose of levying duty is the value and the rate prevailing in the year 1968.
2326 of 1984 filed by Jalyan Udyog1 was allowed by the Division Bench on October 9, 1987 applying the principle of the decision rendered by a Full Bench of that Court in Apar Private Limited v. Union of India2 and another unreported decision of a Division Bench Vishal Gomantak Shipping Corporation v. Union of India.3 The Division Bench held that inasmuch as MSTC was number the canalising agency in regard to ships imported prior to 1978, the authorities cannot insist upon the production of No Objection Certificate from the said Corporation for the purpose of grant of approval for disposal of ships for scrapping under section 42 1 of the Merchant Shipping Act.
The Judgment of the Court was delivered by P. JEEVAN REDDY, J. Leave granted in SLP C No.
Rest of the appeals arise from a companymon judgment of another Division Bench of the Bombay High Court dismissing the writ petitions filed by the ship owners.
Along with the writ petition, the respondents filed a miscellaneous application for an interim direction permitting them to crap break the said ships on payment of the admitted duty.
A doubt was raised whether the said appeal can be heard without effecting service upon the second respondent.
1 Jalyan Udyog v.Union of India, 1987 32 ELT 697 Bom Provided that any such vessel subsequently broken up shall be chargeable with the duty which would be payable on her if she were imported to be broken up.
Civil Appeal No.
On June 1, 1968 the Government of India accorded the permission.
1104 of 1990, preferred by the Union of India, arises from the judgment of a Division Bench of the Bombay High Court allowing the writ petition filed by M s Jalyan Udyog and M s West Asia Shipping Co. P Ltd. the respondents in this appeal.
Ship owners therein relied upon the decision in Jalyan Udyog and asked their writ petitions to be allowed on that basis.
Accordingly, two second hand ocean going vessels were purchased which arrived at the Bombay Port on August 14, 1968.
In April May 1983 both these ships were laid up in the Bombay harbour inasmuch as they had become obsolete and unfit to ply i.e. number seaworthy .
Not getting a favourable response, they approached the Bombay High Court by way of a writ petition being W.P. No.
Writ Petition No.
In the Register of Inward Entry, the date of arrival of the vessel was recorded as July 23, 1981 and ,entry inward granted and registered as July 31, 1981.
An interim direction was granted as prayed for on companydition of paying the admitted duty and furnishing bank guarantee for the disputed amount.
2326 of 1984.
As many as twelve reliefs were sought in the writ petition.
After the decision in Jalyan Udyog1, a batch of writ petitions were placed for disposal before another Division Bench.
2074 of 1993.
The ship owners have accordingly filed these civil appeals.
In August 1983, the second respondent decided to scrap these ships but since the permission of the Director General of Shipping was required for scrapping, it sought such permission from the Director General of Shipping.
The matters arise under the Customs Act, 1962.
In addition to this, movable gears and stores on the vessels, which are to be sold with the vessels, are to be assessed on merits on their appraised value.
