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Issues:
Whether exemption from payment of additional duty of excise (CVD) is available on ships imported into India for breaking up. Analysis: The case revolved around the question of whether the exemption from payment of additional duty of excise (CVD) was applicable to ships imported into India for breaking up. The appellants imported the Ship, M.V. Viktor Kingisepp under Sub-heading 8908.00 of the Schedule to the CTA, 1975, claiming the benefit of concessional rate of basic customs duty and exemption from additional duty. The Notification 74/93 was cited, which exempted goods under Heading No. 89.08 from a portion of the customs duty, but did not mention exemption from CVD. The Tribunal noted that CVD was leviable as per the notification, and previous notifications providing exemptions from CVD could not be applied. Additionally, the Tribunal referred to a case where the Calcutta High Court ruled on a similar matter, emphasizing the requirement that the ship for breaking up should have been manufactured without the aid of power, a condition not met in the present case. The Tribunal also mentioned the judgment of the Hon'ble Karnataka High Court in a different case, which held that ships imported for breaking up, manufactured with the aid of power, were not eligible for exemption from additional customs duty under Notification 167/86. The Tribunal decided to follow the interpretation of the Karnataka High Court, stating that it was the correct application of the notification. Ultimately, the Tribunal concluded that the appellants were liable to pay CVD on the imported ship meant for breaking up, upheld the previous order, and dismissed the appeal.
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