Ashim Kumar Banerjee J. - (1.) Vessel R.S.V. Tribeni was imported from abroad by Calcutta Port Trust in 1965. According to Port Trust they duly paid appropriate customs duty to the extent of Rs. 7,94,800.35p at the time of import. The vessel was being used by the Port Trust for the purpose of river survey. In course of time the vessel became old and the Port Trust decided to sell it as a scrap. There had been a public notice inviting tender from the intending bidders. Ultimately the appellant became the successful bidder. As per the condition of tender any duty including customs duty, if payable, would have to be paid by the appellant.
(2.) The appellant duly paid the price and took delivery of the vessel and thereafter dismantled it. The Customs Authority asked the appellant to file a bill of entry so as to enable the Customs Authority to impose customs duty on the dismantled ship. The appellant contacted the Port Trust. The Port Trust issued a certificate appearing at page 48 to the extent that they duly paid customs duty at the time of import of the ship in 1965. Relying on the said certificate the appellant refused to pay the customs duty which gave rise to the present litigation. The appellant approached the learned Single Judge inter alia for quashing the demand of the Customs Authority with regard to customs duty.
(3.) Before the learned Single Judge it was contended on behalf of the Customs Authority that at the relevant period Ocean going vessels were exempted from customs duty so long it was not dismantled. Since the subject vessel was an Ocean going vessel it must have been permitted to be imported free of duty and as such the appellant was duty bound to submit bill of entry so that the Customs Authority could impose appropriate customs duty on the dismantled ship. The Customs Authority, however, could not produce any document in support of their contention to the extent that the subject vessel was exempted from duty.;