BHIKKAMAL CHHOTELAL Vs. COMMISSIONER OF CUSTOMS, JAMNAGAR

JUDGEMENT

(1.) THE appellants are challenging the rate of duty on fuel/oil of engine room tanks, the duty on foodstuff on board the ship, duty of 1% landing charge on CIF value of the ship imported for breaking. As regards the liability of customs duty on fuel oil in the engine room, the issue stands decided by the judgment of the Tribunal in the case of Shiv Marine Industries P. Ld. v. C.C.E., Bhavnagar - 2004 (178) E.L.T. 1048 (Tri -Mumbai) and in the case of Bhikkamal Chotelal v. C.C. & C.Ex., Ahmedabad - 2007 (211) E.L.T. 303 (Tri -Ahd.) wherein it has been held that the fuel oil has to be classified in its own appropriate heading.

(2.) AS regards the levy of duty on foodstuff/stores, the issue is already settled by the Tribunal in the case of Ghazibad Ship Breakers - 2003 (151) E.L.T. 636 (Tri. -Delhi) and the same also has to be classified in its own heading.

(3.) AS regards the landing charges, the appellants have quoted the Supreme Court judgment wherein it was held that landing charges are the expenditure incurred by an importer for bringing the goods to land and the importer has to be charged on actual basis. It is to facilitate the expeditious clearance that landing charges are assessed on percentage basis. On this basis, the appellant claimed that since the duty was collected before the goods came on land, the landing charges cannot be collected. They have not produced any evidence of actual expenses incurred by them. Further, as observed by the Commissioner (Appeals) that If the appellants contention is accepted, then it will lead to the absurd conclusion that the said charges would not be included in case of payment of duty in respect of prior bill of entry, where the duty is paid even before the arrival of the vessel. It is not the case of the appellant that the imported ship meant for breaking would not be brought to land mass of the country but would be permanently anchored in the sea. Thus, we find that all the disputed issue have to be decided in favour of the revenue and accordingly, reject the appeal.