Thomas, J. - (1.) Whether vessels which are used as transhippers can also be treated as "ocean-going vessels" is the short but hotly mooted issue involved in these appeals. It was once decided by a Bench of two Judges of this Court in Chowgule and Co. Pvt. Ltd. v. Union of India (1987) 2 SCR 351 that such vessels cannot be termed as "ocean-going vessels". Another Bench has now expressed the opinion that the ratio in the above decision requires reconsideration by a larger Bench. Thus, these matters have come up before us.
(2.) Some facts necessary for these appeals can be stated thus: Section 46 of the Customs Act, 1962 requires the importer of any goods, other than goods intended for transit or transhipment, to present a Bill of Entry for home consumption of such goods in the prescribed form. By a notification issued by the Ministry of Finance (Department of Revenue) Government of India on 11-10-1958, "ocean-going vessels" have been exempted from payment of customs duty. The said notification reads thus: "Under Govt. of India Ministry of Finance (Dept. of Revenue) Notification No. 262- Customs dated the 11th October, 1958, ocean-going vessels other than vessels imported to be broken up, are exempt from the payment of customs duty leviable thereon. Provided that any such vessel if subsequently broken up shall be chargeable with the duty which would be payable on her if she were imported to be broken up."
(3.) Some persons who imported transhippers (vessels fitted with equipment for transhipping and topping operations) claimed the benefit of the said notification on the premise that those transhippers are also ocean-going vessels. But the Customs authorities insisted on them to file Bills of Entry under Section 46 of the Act in respect of such vessels. The Assistant Collector of Customs ordered, in confirmation of the aforesaid stand of the customs officials, that the importers should file Bills of Entry for payment of customs duty. Then those importers challenged the orders of the Assistant Collector. Some of them went straight to the High Court under Article 226 of the Constitution while others approached the statutory authorities up to the Customs Excise and Gold (Control) Appellate Tribunal. The orders impugned before us thus relate to the question whether such transhippers are ocean-going vessels. Importers have filed the appeal challenging the decision which negatived their contention and Union of India has filed the appeals challenging those decisions which upheld the contention of the importers.;