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2013 (10) TMI 1259 - AT - CustomsBenefit of Notification No. 167/86 - Exemption from CVD - Import of ship for breaking - Rectification of mistake - Non consideration of one of the appeals - Appeal against the imposition of Additional Duty of Customs - Held that - Final Order dated 6-8-2012, in the preamble, mentions that we have disposed off two appeals of the appellant. The mere perusal of our order dated 6-8-2012, clearly indicate that we had not considered the submissions made in respect of Appeal No. C/1/2008, which is against the imposition of Additional Duty of Customs (CVD) on the vessel M.V. Jagat Priya, imported for breaking - Since there is an error apparent on the face of record, our final order dated 6-8-2012, which is in respect of C/1/2008, needs rectification of mistake - Rectification granted. Benefit of Notification No. 167/86 - Exemption from CVD - Import of ship for breaking - Whether the appellants are liable to pay additional duty in respect of a vessel brought in by them for breaking up in terms of the provisions of the Customs Tariff Act, 1975 - Held that - The vessels imported by the appellant are not seaworthy and they are admittedly for the purpose of breaking. There is a separate entry for this purpose both under the Customs Tariff Act and Central Tariff Act. The product actually imported is the material that can be retrieved from the ship; the structure by itself is of no value and the appellant subjects the vessel to a process to retrieve the material from the structure without the use of power - Therefore, appellant is eligible for the benefit of Notification No. 167/86 - Following decision of ENGEE INDUSTRIAL SERVICES (P) LTD. Versus UNION OF INDIA 2003 (5) TMI 458 - KARNATAKA HIGH COURT - Decided in favour of assessee.
Issues Involved:
1. Rectification of error apparent on the face of the record. 2. Consideration of submissions related to Appeal No. C/1/2008. 3. Eligibility for exemption from Additional Duty of Customs (CVD) under Notification No. 167/86. 4. Applicability of the Karnataka High Court judgment in Engee Industrial Services Pvt. Ltd. Issue-wise Detailed Analysis: 1. Rectification of Error Apparent on the Face of the Record: The appellant filed an application for rectification of an error in the Final Order dated 6-8-2012, which disposed of two appeals but did not address the issues in Appeal No. C/1/2008. Both the appellant and the Special Counsel for the Revenue agreed that there was an error as the findings did not cover the submissions related to Appeal No. C/1/2008. The Tribunal acknowledged the oversight and decided that the final order needed rectification to address this issue. 2. Consideration of Submissions Related to Appeal No. C/1/2008: The appellant argued that the Final Order dated 6-8-2012 did not consider their submissions regarding the imposition of Additional Duty of Customs (CVD) on the vessel M.V. Jagat Priya, imported for breaking. The Tribunal found that the appellant had indeed contested the issue before the lower authorities and claimed the benefit of exemption under Notification No. 167/86. The Tribunal recognized that the appellant's submissions were not considered in the original order and decided to rectify this by addressing the issue in the current proceedings. 3. Eligibility for Exemption from Additional Duty of Customs (CVD) under Notification No. 167/86: The appellant claimed exemption from CVD on the imported vessel M.V. Jagat Priya under Notification No. 167/86, which exempts goods from excise duty if no power is used in their manufacture. The appellant argued that the ship-breaking process did not involve the use of power, and thus, they were eligible for the exemption. The Tribunal noted that the appellant had consistently claimed this exemption before the lower authorities and provided relevant documentation, such as the Bill of Entry, to support their claim. 4. Applicability of the Karnataka High Court Judgment in Engee Industrial Services Pvt. Ltd.: The appellant cited the Karnataka High Court judgment in Engee Industrial Services Pvt. Ltd., which dealt with a similar issue of exemption from additional duty for vessels imported for breaking. The High Court had held that if no power is used in the ship-breaking process, the exemption under Notification No. 167/86 applies. The Tribunal found that this judgment was directly applicable to the present case and binding on them. The Special Counsel for the Revenue suggested remanding the matter back to the lower authorities, but the Tribunal decided that it would serve no purpose as the High Court's judgment was clear and binding. Conclusion: The Tribunal rectified the error in the Final Order dated 6-8-2012 by considering the submissions related to Appeal No. C/1/2008. It held that the appellant was eligible for the benefit of Notification No. 167/86, as the ship-breaking process did not involve the use of power. The Tribunal set aside the order-in-appeal No. 99/JMN/2007 and allowed the appeal to the extent it challenged the imposition of CVD. The application for rectification of mistake was disposed of accordingly. Pronouncement: The judgment was pronounced in Court on 3-5-2013.
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