MAHAVIR INDUSTOMELT PVT. LTD. Vs. COMMISSIONER OF CUS.

JUDGEMENT

(1.) THE appellant imported the vessel 'M.V. BHAVABHUTI' for breaking. The vessel was purchased from Shipping Corporation of India. The dispute in the present appeal is with regard to levy of duty on the ship and its stores.

(2.) THE dispute with regard to bunker is that the same was taken only at Porbunder and therefore, no duty was leviable on it. The contention is that since the vessel was sold at Porbunder any bunker taken thereafter cannot be treated as imported and subjected to duty. On the contrary, revenue authorities have held that vessel remained foreign going until it reached the breaking yard at Alang. It is their contention that the store is to be assessed at Alang, where bill of entry was filed for the purpose of clearance and payment of duty. The impugned order also points out that the appellant has failed to show that the bunker collected at Porbunder was duty paid. Even in the present appeal, the appellant is 13/200/3 not able to show whether the bunker in question was duty paid or not. This fact is crucial inasmuch as a foreign going vessel is eligible for duty free bunker and duty is required to be levied at the time a vessel ceased to be foreign going. In this factual situation, the revenue authorities cannot be faulted for levying duty on the bunker.

(3.) WITH regard to sump oil the submission is that sump oil is the sweeping or accumulation of dirty oil and such oil cannot be classified as oil and subjected to duty. There is merit in this contention and the demand on this score is set aside.