ORDER
S.S. Sekhon, Member (T)
1. Appellants are engaged in the business of breaking old ships procured. One such ship was purchased from M/s Shipping Corporation of India. They did not file a Bill of Entry for the same on the plea that the said vessel was built in India and was not liable for any import duty under Custom Act 1962. The lower authorities did not approve of the same. A Bill of Entry was filed consequent to order of Commissioner (Appeals) as arrived at for this ship. This order of the Commissioner (Appeal) is the subject matter of this appeal. Revenue has filed, cross-objection vide No. C/00-570/04. Appeal and cross-objection are being disposed by this common order.
2. After hearing both sides, it is found –
a) “Vishwa Karuna” purchased from Shipping Corporation of India, (“SCI”, for short) is the subject matter of dispute.
b) This vessel was built in India, by M/s Hindustan Ship Yard Ltd (“HSL”, for short) in their bonded Ware House. Thereafter sold to SCI some were in 1973. It was delivered to SCI on payment made in Indian Rupees. The SCI sold this vessel for breaking to the present appellants., after issuing tenders on 1.8.97. The appellants herein brought the vessel to Alang Port Bhavnagar, for breaking. The lower authorities raised demands on the Bill of Entry filed by the appellants dated 30.7.2004 wherein they had declared the values of the imported material as per the certificate issued by HSL and to pay the duty amount to Rs. 5,71,713/- in terms of notification 165/65-Cus consequent to order of CC(Appeals). The appellants are aggrieved by that order dated 1.6.2004 directing the appellants to pay the Custom duty.
c) They rely on the decision of this Tribunal in the case of Dev Krupa Ship Breakers A/778/WZB/2004 dated 3.9.2004 wherein for a similar ship, taken up for breaking, which was built in the Bonded Warehouse of HSL and had been delivered/sold to SCI and thereafter sold to M/s Dev Krupa Ship Breakers it was held, that duty on such ship cannot be imposed on the Ship Breaking Finn after considering the decisions in the case of Mustan Teherbhai 2003 (154) ELT 472 & Jalyan Udyog 1993 (68) ELT 9. This decision of the Tribunal in the case of Dev Krupa Ship Breaking, was taken up in appeal by Revenue in the High Court of Gujarat at Ahmedabad. The Hon. High Court vide their order No. 537/04 and after carefully going through the impugned order passed by CESTAT in Dev Krupa Ship Breakers case were of the considered opinion that no interference was called for by that Court in the appeal filed by Revenue, to determine the important question of law as they found no question of law arose.
d) Following the above decision in case of Dev Krupa Ship Breaking, we find no reasons to uphold the order of Commissioner (Appeals) impugned before us. The same is required to be set aside and appeal of the assessee is to be allowed.
3. In view of the above findings, the appeal has been allowed and order of Commissioner (Appeals) does not sustain, we would find no merits in the cross-objections filed. The same stand disposed in above terms. Appeal & cross-objection stand disposed in above term.
(Pronounced in Court)