SALGAOCAR MINING INDUSTRIES Vs. UNION OF INDIA

JUDGEMENT

(1.) IN this petition, the petitioners basically challenge letter dated 22nd January, 1997, of the Assistant Commissioner of Customs, under which the petitioners were permitted to remove the wreck of the transhipper vessel "m. V. SANJEEVANI", on filing a fresh BIll of Entry and payment of duty on the total wreck of the vessel. Besides seeking to quash the said letter dated 22nd January, 1997, the petitioners have sought some other reliefs connected therewith.

(2.) THE short point which is required to be decided in this petition is whether the petitioners are liable to file Bill of Entry and pay customs duty in respect of removal of the wreck of the said transhipper. A brief background of the matter is required to be enumerated in order to appreciate the controversy involved.

(3.) THE said transhipper was acquired in the year 1971, by M/s. V. M. Salgaocar and Brothers Ltd. It was an ocean-going vessel. After the arrival of the said transhipper vessel, the Mormugao customs raised a demand for filing of Bill of Entry in respect of the same, for home consumption, on the ground that the said transhipper vessel was "goods", in terms of section 2 (22) of the Customs Act, 1962 (hereinafter referred to as "the Act" for short) and was required to be cleared for home consumption under section 46 of the said Act. This action of the customs authorities was challenged by V. M. Salgaokar and Brothers Ltd. , by filing a Writ Petition (Special Civil Application No. 2/72) and the then Judicial Commissioner of Goa, Daman and Diu, held that transhippers are ocean-going vessels and exempted from payment of customs duty and no Bill of Entry is required to be filed in respect of the transhippers. Respondent No. 1 had preferred Special Leave Petition before the Apex Court. In the meantime, the same controversy was decided by the Apex Court in (Chowgule and Co. Pvt. Ltd. and another v. Union of India and others), 1987 (2) Bom. C. R. 691 : 1987 (28) E. L. T. 39 S. C. , wherein it was held that transhippers are "goods" for the purposes of the said Act and it was necessary to file Bill of Entry for clearance for home consumption under section 46 of the said Act.