KHANBHAI ESOOFBHAI Vs. UNION OF INDIA

JUDGEMENT

(1.) THESE writ petitions raise a common question regarding the exigibility of customs duty or additional or countervailing duty or auxiliary duty in respect of the ships referred to in the writ petitions. The ships were built outside India. They were acquired for the purposes of Indian navy. In some cases particulars with regard to the date on which or the year in which the ship had been brought to India have been given. Such is the position in relation to Writ Petitions No. 1476 of 1983, 2931 of 1983, 2976 of 1983 and 2978 of 1983. In relation to other cases it has been indicated that these ships had been built for the Indian Navy in 1943 and in 1956. It will be reasonable to assume that the ships so built had been brought to India within a reasonable time thereafter. This would support the submission of counsel for the petitioners, that they had been brought to India before 1958.

(2.) COUNSEL submitted that the import of such ships prior to 1958 had been totally exempt from the levy of duty on the basis of a Notification issued by the Government of India. The existence or otherwise of such a Notification was not clarified by counsel on behalf of the Union of India. He expresses his inability to trace such a Notification. Even assuming that there is no such notification, it is for the taxing authorities to establish the basic facts which would bring a transaction to the assessable area. Having regard to the materials, we are not satisfied that the import of these ships would be subject to the duties as demanded particularly in the light of the factual position indicated above. The Notification dated 11th October 1958 will have no application to the present situation. In view of this, we hold that no duty is leviable in relation to the ships covered by these writ petitions.

(3.) THE writ petitions will stand, accordingly, allowed.