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Khanbhai Essofbhai vs Union Of India on 1 January, 1800

8. The attempt of Revenue, as revealed in the impugned order and as argued by Learned Authorized Representative, is to demonstrate that the vessel, having breached the statutory obligation to be presented for assessment, as prescribed in section 46 and section 17 of Customs Act, 1962, on first arrival in Indian waters by arrogating eligibility in the impugned exemption notification, should, by taking that temporary privilege to its logical conclusion, be assessed to duty as applicable to ships for breaking. Urging that the law permits only one of these two alternatives, reliance was placed on the decision of the Hon'ble High Court of Bombay in Khanbhai Essofbhai v. Union of India [1989 (41) ELT 239 (Bom)]. Continuing in that vein, it was submitted by Learned Authorized Representative that the exemption in the notification is effective only as long as the ship is a conveyance and that any other disposal would render it liable to duty that was foregone initially.
Bombay High Court Cites 11 - Cited by 3 - Full Document

Chowgule & Co. Private Limited Etc vs Union Of India & Ors on 19 February, 1987

10. That MV Maratha Transhipper had not been imported in 1969 for breaking up is not in doubt; the dispute was over the claim that it was an 'ocean going vessel.' Further discussion of that aspect, as well as that of purported deferment of duty, is academic as the Hon'ble Supreme Court did, in Chowgule & Co Private Ltd Etc v. Union of India & others [1987 SCR (2) 351], adjudge the eligibility for exemption from duty at the time of import. The position of law settled, in re Jalyan Udyog, by the Hon'ble Supreme Court is that the exemption applies unconditionally at the time of import and that the vessel, if intended to be broken, must be subject to assessment separately as though imported afresh for that purpose. The concern here is, thus, restricted to the continuing operation, and admissibility, of the notification in 1985 when the vessel was wrecked.
Supreme Court of India Cites 31 - Cited by 160 - O C Reddy - Full Document
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