AMRIT PAPERS Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) APPELLANT is a Government concern owned by the State of Kerala. They brought the Vessel by name MV Akra Tenaron for braking in April' 85 . Bill of Entry for the clearance of that ship was filed in December 1986. It was assessed to customs duty at the rate of Rs. 1,400/ - per Light Displacement Tonnage (LDT) in terms of Notification No. 163/86 -Cus, dated 1 -3 -1986. Thereafter, the vessel was broken . The scrap was cleared during the months of April' 88 and May' 88. At the time of clearance of this scrap, they claimed exemption in terms of Notification No. 93/88 -C.E., dated 1 -3 -1988. This claim was negatived by the adjudicating authority as per Order -in -Original No. 13/89, dated 6 -2 -1989. Assessee took -up the matter in appeal without success as is evidenced by Order -in -Appeal No. 241/90 (c), dated 4 -12 -1990.

(2.) THE fact that duty on the vessel at the rate of Rs. 1,400/ - per LDT was paid by the assessee is not disputed. The said amount was not paid partly as customs duty and partly as additional duty of customs under Section 2A of Customs Tariff Act. The authorities took a view that the assessee is not entitled to the benefit of Notification No. 93/88. This view was taken by virtue of provision contained in proviso (ii) to the notification. The said proviso stood as "when imported before the 1st day of March 1988, duty of customs leviable thereon under the said First Schedule at the rate of Rs. 1035/ - per Light Displacement Tonnage has been paid, and the additional duty leviable thereon under the said Section 3 at the rate of Rs. 365/ - per Light Displacement Tonnage, has been paid."

(3.) IF there was any mistake in second proviso to the notification namely Notification No. 93/88, that was rectified by a subsequent Notification No. 63/91, dated 25 -7 -1991. The amendment brought by Notification No. 63/91 was only a clarificatory notification of the earlier one namely 93/88.