1998 (6) TMI 322 - AT - Customs

Summary

Issues:
1. Calculation of light displacement tonnage (LDT) for assessment of imported ship.
2. Jurisdiction of appeal - Tribunal or Commissioner (Appeals).
3. Interpretation of Note 2 of Chapter 89 of the Tariff for determining LDT.
4. Inclusion of permanent ballast in the assessment of the vessel.

Analysis:

1. The case involved the calculation of light displacement tonnage (LDT) of an imported ship for assessment purposes. The Collector's order indicated that LDT should include permanent ballast. The appellant imported a ship for scrap, and the issue was whether permanent ballast should be considered in calculating LDT.

2. The Departmental Representative raised a preliminary objection regarding the jurisdiction of appeal, arguing that the appeal should lie with the Commissioner (Appeals) instead of the Tribunal. However, it was clarified that the appeal was against the Collector's order, which determined the basis for finalizing the assessment, thus falling under the Tribunal's jurisdiction.

3. The interpretation of Note 2 of Chapter 89 of the Tariff was crucial in determining LDT. The Collector relied on the glossary of terms from the Ministry of Shipping and Transport to calculate LDT, which was higher than the LDT indicated in the stability book. The Tribunal upheld the method approved by the Collector for calculating LDT based on the relevant documents.

4. The Departmental Representative argued for the assessability of the vessel's permanent ballast to duty, but the Tribunal clarified that the appeal was solely focused on determining LDT for assessment purposes and did not involve the assessment of permanent ballast. Therefore, the Tribunal allowed the appeal, set aside the impugned order, and granted consequential relief.

In conclusion, the Tribunal's decision focused on the accurate calculation of light displacement tonnage for assessing the imported ship, clarifying jurisdictional issues, interpreting relevant tariff provisions, and excluding considerations of permanent ballast from the appeal's scope.