(1.) APPELLANT, a ship-breaker, has challenged the judgment of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT for short) dated 10th March 2004, by virtue of which the Tribunal allowed the Revenue's appeal and set aside the order passed by the Appellate Commissioner.
(2.) THE appellant had purchased a ship MV Samrat Ashok from the Shipping Corporation of India through a public auction for a sum of Rs.11,63,00,000/-. The ship was purchased for breaking. The vessel was handed over to the appellant at Sikka where it was beached and from Sikka Port, the appellant brought the ship to Alang Ship Breaking Yard. In terms of the provisions of Customs Valuation Rules, 1988, the adjudicating authority initially determined the assessable value of the ship for the purpose of collection of customs duty. Such determination was in absence of details of cost of freight and insurance incurred for shifting the ship from Sikka to Alang Shipyard. On the basis of such determination, the adjudicating authority demanded customs duty of Rs.4,18,07,805/-. Subsequently, when the present appellant furnished the details of freight, insurance and other charges, the assessment was modified and the duty demand was revised to Rs.3,47,29,228/-.
(3.) ON the other hand, learned counsel Ms.Jani for the appellant opposed such preliminary objection contending that the appeal was admitted in the year 2005. Such a contention at this stage should not be allowed to be raised. She further submitted that the issue involved is whether the charges incurred by the importer for shifting the ship from Sikka to Aland Ship Breaking Yard should be included in the assessable value of the ship for the purpose of collection of customs duty. She submitted that the appeal would, therefore, be maintainable before this Court. In this context, she relied on the decision of the Apex Court in the case of Navin Chemicals Mfg. And Trading Co. Ltd. v. Collector of Customs, (1993) 4 SCC 320.