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TMI Blog1999 (10) TMI 217X X X X Extracts X X X X X X X X Extracts X X X X ..... f LDT reads as under : Light Displacement Tonnage (LDT) means LDT in MTs as per builder s registered L.D.T. referred to in the Stability Book or the Builder s Certificate. 2. They produced a certificate dated 29-6-1992 from American Bureau of shipping. The Certificate reads as follows : This is to confirm that on the basis of documents already in our records, the light ship weight of the vessel after being converted in 1975 is 9,609.25 long tons without any ballast. 3. The Memorandum of agreement witnessing the purchase by the appellants described the price as US $ 176 per long tons of LDT, excluding permanent blast, in accordance with the certificate from the ABS referred to above. A report of M/s. Ericson Richards at Bomb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the Revenue. 6. The single issue for determination in this case is whether in calculating the LDT of a vessel, the ballast has to be taken into account or not. 7. The term Tonnage in shipping industry is used in different contexts. Displacement tonnage of a vessel is the weight of water that the ship displaces. Loaded displacement tonnage is the weight of the vessel fully loaded with cargo, passengers, fuel, stores and crew. Light displacement tonnage is the weight of the vessel, without cargo, passengers, fuel, stores and crew. Deadweight tonnage (DWT) is the difference between light displacement tonnage and full displacement tonnage. The query made by the customs in finalising the assessment to the various experts was whether perm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... will generally be stable, if it is fully laden. When it is not fully laden, it may need to take on board some ballast, to achieve the degree of stability required. The requirement of ballast would also vary according to the weather conditions. A passenger ship would generally carry ballast, as there would be no weighty cargo but only lightweight people. The quantum of ballast would thus, continuously be changing. 12. Trim and stability are conditions which indicate the requirement of ballast for the ship. If the ship has less cargo on one side than on the other side, to maintain the trim, some ballast has to be taken on that side where the cargo is less in weight. 13. The dividing line between the permanent ballast and temporary ballast ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Such a rare event and occurrence cannot be a parameter determining fixed permanent values. The temporary ballast is an ever changing phenomenon and therefore, for the same reason cannot become an element of calculation, in determining normal values. 15. We have seen the expert opinions. That of the Mazgaon Docks Ltd. is cryptic and although it refers to some glossary notes and notifications it does not enclose any. The opinion of the Director General of Shipping is very clear. It also clarifies that ships generally are not designed and manufactured to have permanent ballast. It also specifies that where the stability report refers to ballast it is in the case of liquid ballast, (temporary ballast) and therefore, not includible in the LDT. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore them. On perusal, we find that the ratio of this judgment, is not relatable to the facts before us at all inasmuch as the problem in the present case is arising in the absence of the stability book. 18. Shri Patil also referred to some discussions between the Chairman of CBEC and the assessees of Rajkot Collectorate on this issue. On examination of the minutes we find that on perusal of the minutes, no specific conclusion can be arrived at. 19. Thus on perusal of the expert opinions on record as also on examination of the relevance and importance of ballast in the design and operation of marine vessels, we hold that for calculation of LDT, the ballast whether permanent or temporary, is not to be included. 20. Appeal is allowed in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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