BEDI SHIPPING LTD. Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) The appeal is filed by the assessee which is a shipping company challenging order dated 12.4.2006 passed by the Customs,Excise & Service Tax Appellate Tribunal("the Tribunal" for short). By such judgement, the Tribunal confirmed the order of the Adjudicating Authority dated 30.6.2004 as upheld by the Appellate Authority by his order dated 28.2.2005.

(2.) At the time of admission of appeal, following substantial questions of law were framed :

(3.) The assessee filed a reply to the notice on 22.3.2004. It was pointed out that the assessee carried out only repair works on such barges and there was no breaking activity. It was contended that the department's stand that such activity amounted to breaking was not valid. It was pointed out from the various statements of the representatives of the assessee and the repairer contractor that during the repairing work several parts had to be replaced. The worn out and damaged parts such as MS plates, winches and such spares of barges required replacement, to keep the barges in good condition. It was contended that the quantity of plates replaced was higher than that of plates taken out. In the natural course when such barges would be brought for breaking, at that time as per the condition of the exemption notification, necessary duties will be paid on such barges. It was contended that such duty is charged on the value of the vessel at the time of breaking and the barges will therefore, be valued at the time of being brought for breaking. Its value would not be reduced. On this and several other grounds, the assessee opposed levy of duty and penalty.