Ajit Kumar Sengupta, J. - (1.) The subject matter of challenge in this writ petition filed by the Shipping Corporation of India is a notice of demand No. S-146/30/ KPD/85/S60/(VII)-204/85A, dated 14th January 1986 issued by the Assistant Collector of Customs for Appraisement Group VII and as confirmed by order dated 11th August 1986. The relevant facts are as under :
(2.) The Motor Vessel "Vishwa Jyoti" (hereinafter for the sake of brevity referred to as "the said Vessel") was imported by the Shipping Corporation of India, the writ petitioner, from Poland in or about April 1959. Under item No. 76(i) of the Schedule-I of the Indian Tariff Act, 1934 as amended in 1949, customs duty was leviable on all ships, boats and vessels imported into India either for the purpose of navigation or for breaking up. On October 1,1958, the Central Government issued the following notification :- "G.S.R. 930 - In exercise of the powers conferred by Section 23 of the Sea Customs Act, 1978 (8 of 1978), as in force in India and as applied to the State of Pondichery, The Central Government hereby exempts ocean-going vessels imported into India or the State of Pondichery, other than vessels imported to be broken up, from the whole of the duty of customs 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.) In view of the said Exemption Notification dated 11th October, 1958, no customs duty was levied on the importation into India of the said vessel in the year 1959, since the same was an ocean-going vessel.;