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TMI Blog1996 (3) TMI 229X X X X Extracts X X X X X X X X Extracts X X X X ..... ant to the order of Hon ble High Court of Bombay in Adm. Suit 18 of 1985. Upon purchase of vessel `M.V. SEA FALCON-I for Breaking and scrapping , the appellants had approached Asstt. Collector of Customs J. Group Bombay for clearance of said `M.V. SEA FALCON-I for Breaking/ Scrapping. Inventorisation of Moveable Gears/Stores and other available items was ordered by Asstt. Collector of Customs J. Group, through preventive supervision of Customs Department. Home consumption Bill of Entry was presented back to appraising department by importers Clearing Agent M/s. Pandurang Bhagwan Bombay C.H.A. No. 11/0105 alongwith a letter dated 24-1-1996 from the appellant. The appellant had also submitted seven documents pertaining to the tenders that had been challenged in the said Suit by the Sheriff of Bombay and also the payments made by them in full and final payment to the Sheriff of Bombay High Court towards the tender purchase price of Rs. 80,30,000/-. He had also produced documents from M.S.T.C. s declaration by canalising agency with an authority for Customs clearance directly. They had also produced P.O. s inventory for moveable gears and stores, Marine Survey Report of M/s. Met ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sult of this, in their opinion, machinery which will fetch a good price will have to be scrapped. The said vessels are available at cheaper international price than the vessel which are delivered on their own power. The appellant had pointed out that price of vessel delivered under own power and price of vessel for delivery in its laid-up condition will be different. They also relied on the order of the Writ Petition 722 of 1986 passed by Bombay High Court had directed the Customs to assess the International C.I.F. value of the vessel M.V. SEA FALCON-I by physical Survey of the vessel through a Govt. Recognised Marine/Vessel, Surveyor and Valuer and complete assessment on or before 9-4-1986. In pursuance of Hon ble High Court s order dated 3-4-1986 Customs had asked the appellant to get physical survey of vessel through Capt. J.B. Sawant. In his report dated 14-4-1986, Shri Sawant on physical survey report in respect of M.V. SEA FALCON-I, has observed that valuation made by him is on as is where is basis and in vessel s dead and laid-up condition . The ld. Collector has observed that the said report lacks in giving full details of all missing parts, corroded and rusted parts, pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aterial is with respect to bid value of Rs. 80,30,000/- Surveyor J.B. Sawant in his survey reports has not in detail set out the value of each items presumed to be missing or details of items missing due to pilferage/theft. Capt. J.B. Sawant has also referred to the order of Bombay High Court dated 1-3-1986 in admirality Suit No. 18 of 1985 in his Survey Report and has arrived at the value of missing articles as Rs. 7,00,000/-. Capt. Sawant has not specifically mentioned whether the value of stolen material is international value or otherwise. Now, since the Bombay High Court has certified the value of missing materials as Rs. 7,05,000/- vis-a-vis bid price of Rs. 80,30,000/- (Rupees eighty lakhs thirty thousand) the international value of missing parts is to be worked out proportionately by treating valuation of missing material given by Capt. J.B. Sawant as if on the basis of bid value. In admirality Suit No. 18 of 1985. Therefore, I order that the vessel M.V. SEA FALICON-I be assessed in pursuance of Hon ble High Court of Bombay, Order dated 3-4-1986 in the W.P. No. 722 of 1986 and also in light of the Survey report and discussions of the undersigned with the Surveyor Capt. Sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wever, the lower authority has not given any legal reasoning as to why the remission of duty is allowed only upto the value of Rs. 4,90,642/-, whereas in the impugned order, stores stolen of Rs. 7,05,000/- have been confirmed. Accordingly, I admit the appeal only to the extent that remission of duty may be allowed on the loss of the goods, value of which is Rs. 7,05,000/-". 2. We have heard the appellant s representative and Shri Vipin Handa, ld. SDR for the Revenue. 3. At the outset, ld. Representative submitted that the value of US $ 96/- per LDT assessed by the Asstt. Collector has not been challenged by them. Survey Report has stated that for reconditioning the vessel of Rs. 20 lakhs is required to be spent and therefore, the department should have reassessed the value of the vessel by taking into consideration the Survey report of Capt. J.B. Sawant. It is his submission that non-consideration of this survey report in terms of the High Court Order has made the impugned order unsustainable. It is stated that although MSTC s letter dated 17-1-1986 also mentions that the International Price of similar vessels for delivery under their power is fixed at US $ 96/- per LDT. It is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le value of the impugned goods. As can be seen from the Survey Report of M/s. Metcalfe Hogdikingson, the Surveyor had examined the ship s condition and stated that the reduction of value of 20% in the International market price could be granted to the vessel in question. There is only a reference in the report that in case if the vessel is required to be reactivated then a sum of Rs. 20 lakhs is required to be spent. The appellants had not reactivated the vessel for the purpose of putting the vessel on sea. They had obtained MSTC s clearance for breaking/scrapping the vessel. They had given the highest bid of Rs. 80,30,000/-. The value of the similar vessel as per international market during Dec. 85 has been worked out to US $ 458304.00 while the importer had declared the value as US $ 308651. The importer had claimed depreciation to the extent of 20% of C.I.F. value as certified by MSTC. The lower authorities have considered all these and have arrived at the value of US $ 96/- per LDT. The assessee is now claiming the value as per the Survey Report of Capt. J.B. Sawant who had valued the vessel of Rs. 28 lakhs is to be required to be accepted. This figure has been arrived at by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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