UDAYANI SHIP BREAKERS LTD Vs. COMMNR OF CUSTOMS AND CENTRAL EXCISE RAJKOT
LAWS(SC)-2006-2-30
SUPREME COURT OF INDIA
Decided on February 08,2006

UDAYANI SHIP BREAKERS LTD Appellant
VERSUS
COMMNR.OF CUSTOMS, CENTRAL EXCISE, RAJKOT Respondents


Referred Judgements :-

J.M. INDUSTRIES VS. COLLECTOR OF CUSTOMS [REFERRED TO]



Cited Judgements :-

A.N. IMPEX VS. COMMISSIONER OF CUSTOMS (PORT), KOLKATA [LAWS(CE)-2012-8-64] [REFERRED TO]
MADHAV INDUSTRIAL CORPN. VS. COMMISSIONER OF CUSTOMS (PREVENTIVE), JAMNAGAR [LAWS(CE)-2008-11-41] [RELIED ON]
COMMISSIONER OF CUSTOMS, BHAVNAGAR VS. MAHAVIR SHIP BREAKERS [LAWS(CE)-2007-3-78] [REFERRED TO]


JUDGEMENT

Bhan, J. - (1.)The assessee-appellant had filed this appeal under Section 130(E) of the Customs Act, 1962 (for short "the Act") against the final Order No.C-I/II/WZB/2000 dated 2-1-2001 in Appeal No.C/533-V/99/Bom passed by the Customs Excise and Gold (Control) Appellate Tribunal, West Zonal Branch at Mumbai (hereinafter referred to as "the Tribunal") whereby the Tribunal reversed the order in appeal passed by the Commissioner of Central Excise on 8-3-1999 and held that the appellant could not be granted abatement of the duty.
(2.)Briefly stated the facts of the case are:- M/s. Priya Blue Industries Pvt. Ltd., Plot No.V-1, Sosiya (hereinafter referred to as "the importer") hold import export code number and also Central Excise Registration. It imported vessel MV VLOO ARUN under OGL for the purpose of breaking. The vessel weighing 40,017 LDT had been purchased for US$ 68,49,839.00 i.e @ US$ 167 per Long Ton. Importer got a letter of Credit bearing No. 58 IDC 21.97 dated 12-8-1997 opened in favour of Ruby Enterprise Inc., 2018, Antwerp, Belgium, the foreign sellers for US$ 68,49,839.00 which amount was remitted by the Vysya Bank Ltd., Mumbai to the beneficiaries on 12-8-1997 itself. The importer had thereafter sought and been granted permission for beaching the vessel at designated plot by the proper officer of Customs. On account of heavy current and storm the vessel got dragged towards Plot No. V-5 Sosiya and got grounded there. The importer vide its application dated 24-6-1997 requested the Assistant Commissioner of Central Excise Division, Bhavnagar for extension of time for filing the Bill of Entry for home consumption in respect of the aforesaid vessel. The requisite permission was granted by the jurisdictional Assistant Commissioner. The importer, however did not file the Bill of Entry and sought further extension of time which was declined by the Assistant Commissioner, Bhavnagar. The importer thereafter entered into a memorandum of understanding on 10th September, 1997 with Udyani Ship Breakers Ltd. ("the appellant" herein) who are the owners of Plot No.V-5, Sosiya in front of which the vessel was grounded for sale of the ship for Rs. 12,01,00,000/-. An agreement to sell was executed on 11th September, 1997 and the sale was effected by Bill of sale on 26th December, 1999.
(3.)The appellant also holds import export code number as well as Central Excise Registration for ship breaking. The appellant presented a Bill of Entry bearing No. SBY-III/59/97-98 dated 12-9-1997 before the Superintendent of Customs, SBY-Alang. The price declared by the appellant was Rs. 12,01,00,000/-. As the price declared by the appellant was abnormally low a reference was made to the appellant for making a correct declaration with regard to the price.


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