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TMI Blog1989 (2) TMI 119X X X X Extracts X X X X X X X X Extracts X X X X ..... he said vessel. The Deputy Conservator of the Bombay Port Trust as receiver in terms of the provisions of Section 14 of the Indian Ports Act, 1908, had issued notice to the owners of the vessel who did not take any action. It is not disputed that after the said vessel was salvaged by Respondent No. 4 along with the broken parts and scrap the vessel had vested in the Government of India. 2. In November, 1980 the Deputy Conservator of the 4th Respondent had issued tender notice for disposal of the said salvaged vessel and its parts and scrap. In the prescribed tender form it was, inter alia, stipulated : "Customs duty on the vessel is payable by the successful tenderer" - vide clause 6. It was further stipulated : "4% service charges on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... had requested the Controller of Stores, Bombay Port Trust, to deliver the vessel Ocean Star and her broken parts and scrap. The Deputy Controller of Stores, Bombay Port Trust, by his letter dated 3rd June, 1981 had advised the Petitioners about the manner in which the delivery of the vessel and her broken parts, etc., was to be taken. Only after the Deputy Conservator of the Bombay Port Trust by his letter dated 9th July, 1981 had, inter alia, asked the Petitioners to lodge the necessary deposit with the Docks Manager and to settle the customs duty, the Petitioners for the first time by their letter dated 23rd July, 1981 had raised objection regarding the demand for payment of the customs duty and commission charges to the Metal Scrap Trade ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lawful authority. The learned Counsel for the Respondent No. 4 was right in the submission that in essence the transaction in question relating to purchase of the salvaged vessel by the Petitioners was in the realm of contract. Undoubtedly, the Respondents were under obligation to Act fairly, reasonably and in accordance with law. In the instant case, tenders had been invited on behalf of the Respondent No. 4 and the same were submitted by the Petitioners and others upon the basis that customs duty would be payable by the successful tenderer. In addition, service charges were to be paid to the Respondent No. 5. Ordinarily the Court ought not to permit a successful bidder to deviate from any of the terms upon which his tender had been accep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... after the said vessel had wrecked and was salvaged, it was no longer a conveyance for carriage of other goods. The salvaged vessel and her parts were goods. In this connection, the learned Counsel for the Respondent Nos. 1 to 3 has drawn our attention to the provisions of Section 21 of the Customs Act which is in the following terms :- "21. All goods, derelict, jetsam, flotsam and wreck brought or coming into India, shall be dealt with as if they were imported into India, unless it be shown to the satisfaction of the proper officer that they are entitled to be admitted duty-free under this Act." We are unable to make any distinction between goods including derelict, jetsam, flotsam and wreck brought voluntarily by an agency and a sea-g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on reads as follows :- "EXEMPTION NOTIFICATION Exemption to ocean-going vessels other than vessels imported to be broken up :- Ocean-going vessels other than vessels imported to be broken up, are exempt from the payment of Customs Duty leviable thereon : Provided that any such vessel subsequently broken up shall be chargeable with the duty which would be payable on her if she were imported to be broken up." According to the first paragraph of the said notification, ocean-going vessels except those which are imported to be broken up at the relevant time were exempt from customs duty leviable thereon. But according to the proviso, in case an ocean-going vessel is subsequently broken up, the same would be charged with duty which would ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -rollable scrap in the form of old ships, vessels, etc., for breaking. In the circumstances, it was not really relevant whether the Petitioners themselves brought the sea-going vessel or had become owners after the vessel became a wreck. In either case, the Petitioners would be liable to pay service charges. Renderings of any service directly to the Petitioners could not be a condition for upholding the validity of service charges to the Respondent No. 5. On the other hand, as the canalising agency the 5th Respondent was bound to perform duties in the matter of disposal or distribution of the items canalised for import to the said Respondent. 10. The objection of the Petitioners regarding demand of the additional duty under the Customs Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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