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Issues:
1. Interpretation of the Customs Act, 1962 regarding the classification of a vessel as a foreign going vessel. 2. Determination of whether a vessel engaged in coastal trade between Indian ports is entitled to duty-free consumption of foreign stores. 3. Application of legal precedents in determining the status of a vessel engaged in carrying goods between Indian ports. Analysis: Issue 1: The primary issue in this case revolves around the interpretation of the Customs Act, 1962, specifically regarding the classification of a vessel as a foreign going vessel. The Appellate Collector held that the vessel in question, M.T. Netaji Subhas Bose, should be treated as a foreign going vessel even during its voyages between Indian ports for the purpose of discharging cargo. The Appellate Collector relied on a judgment of the Calcutta High Court, although it was not explicitly stated if this judgment supported the decision. However, the Shipping Corporation argued that the vessel was not engaged in a foreign run but rather a coastal run due to its voyages between Indian ports. Issue 2: Another crucial aspect of this case is the determination of whether a vessel engaged in coastal trade between Indian ports is entitled to duty-free consumption of foreign stores. The Customs Act, 1962 permits foreign stores on board a ship to be consumed without payment of duty during the period the vessel is classified as a foreign going vessel. The Shipping Corporation contended that M.T. Netaji Subhas Bose, by carrying foreign cargo between a foreign port and an Indian port, qualified as a foreign going vessel and thus should be exempt from duty on stores consumed. Issue 3: The application of legal precedents in determining the status of a vessel engaged in carrying goods between Indian ports was also a point of contention. The Shipping Corporation argued that the judgment of the Calcutta High Court in a similar case applied to their situation, emphasizing that M.T. Netaji Subhas Bose acted as a lighter between Indian ports, similar to the case cited. However, the tribunal disagreed, stating that the circumstances of the present case differed significantly from the precedent cited, as the vessel's voyages between Indian ports were deemed coastal runs, not foreign runs. In conclusion, the tribunal set aside the order of the Appellate Collector and directed that duty be paid on the stores as demanded by the Visakhapatnam Custom House. The decision was based on the interpretation of the Customs Act, 1962, the classification of the vessel as a foreign going vessel, and the distinction between coastal and foreign runs in the context of carrying goods between Indian ports.
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