- (1.) Briefly stated the facts of the case are as follows :- Inspector General of Police, Andaman & Nicobar Islands published in the Statesman' that a Public Auction would be held on 21- 12-1986 at Port Blair for disposal of three confiscated wooden trawlers owned by Thai personnel, seized within the territorial waters of India in exercise of sovereign powers of the Government.
(2.) In the said advertisement dated 9-12-1986 it was published that Customs duty would be worked out on the basis of the final bid price and that the responsibility of such payment would be that of the Andaman Administration. By his letter dated, 5-6-1987 the Superintendent of Police, Andaman & Nicobar Islands informed the respondent that 51.7% of the bid amount would have to be credited towards customs duty. Subsequently, by a letter dated, 28-6-1989 addressed to the Collector of Customs, Calcutta a demand draft calculated @ 51.7% towards Customs duty in respect of the said three trawlers was sent to the Customs Authority.
(3.) By the Notification No. 262/58/CUS., dated 11-10-1958 the Government of India exempted ocean going vessels other than the vessels imported for breaking up from the payment of customs duty leviable thereon provided that any such vessel subsequently broken up would be chargeable with the duty payable on her as if she was imported for breaking up.;