2007 (3) TMI 264 - SC - Customs

Rate of duty - High Court dismissed appeal as no question of law much less substantial questions of law were involved - Held that - following substantial questions of law arises as to whether - (1) M/s. Shree Dev Krupa Ship Breaking, Sosio Ship Breaking Yard, Bhavnagar, are not importer within the meaning of Section 2(26) of the Customs Act, 1962? (2) In the absence of specific condition (like condition no.65 of Notification No. 16/2000-Cus., dated 2-3-2000) stipulating the filing of fresh Bill of Entry for breaking up and creating a legal fiction in the Notification No. 163/65-Cus., dated 16-10-1965 as amended vide Notification No. 129/86-Cus., dated 17-2-1986 cannot be retrospectively extended and posted to be read in notification No.l63/65-Cus., dated 16-10-1965 as amended? (3) The relevant date on which the vessel is broken up would be the date on which it is taken for beaking i.e. the date of transfer from the Shipping Corporation of India to the respondent and not the date of beaching at Alang and on that date the importer would be Shipping Corporation of India? Matter remitted to High Court for for recording its opinion on these questions in accordance with law.

Summary

Issues:
1. Dismissal of appeal by High Court under Section 130 of the Customs Act, 1962.
2. Interpretation of questions of law raised by Revenue.
3. Questions regarding importer status, filing of fresh Bill of Entry, relevant date for vessel breaking, and rate of duty under Section 15 of the Customs Act, 1962.

Issue 1 - Dismissal of appeal by High Court under Section 130 of the Customs Act, 1962:
The Supreme Court granted leave in a case where the High Court had dismissed the Revenue's appeal under Section 130 of the Customs Act, stating no substantial questions of law were involved. The Supreme Court disagreed with the High Court's view, citing a previous judgment and holding that the questions raised by the Revenue did arise from the Tribunal's order and required consideration by the High Court. The matter was remitted back to the High Court for its opinion on the questions raised.

Issue 2 - Interpretation of questions of law raised by Revenue:
The Supreme Court identified four questions of law raised by the Revenue, including the importer status of certain entities, the requirement of filing a fresh Bill of Entry, determination of the relevant date for vessel breaking, and the applicable rate of duty under Section 15 of the Customs Act, 1962. The Court emphasized that these questions were substantial and needed consideration by the High Court, remitting the matter back for a decision in accordance with the law.

Issue 3 - Questions regarding importer status, filing of fresh Bill of Entry, relevant date for vessel breaking, and rate of duty under Section 15 of the Customs Act, 1962:
The questions raised included whether certain entities were importers under the Customs Act, the retrospective extension of specific conditions in notifications, determination of the relevant date for vessel breaking, and the applicable rate of duty for goods entered for home consumption. The Supreme Court directed the High Court to consider these questions without any influence from the observations made in the appeal, allowing the High Court to decide on the merit of the case independently.

In conclusion, the Supreme Court allowed the appeals, remitting the matter back to the High Court for a fresh consideration of the substantial questions of law raised by the Revenue under the Customs Act, 1962.