The Ahmedabad bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has upheld the penalty imposed on the importer of ship breaking vessels for sale of Gas Cylinder along with vessels without scrapping as mandated under the law. The appellant, G N Ship Breakers is an importer of ship breaking vessels. The department held that the appellant is liable for penalty under section 112 (a) of the Customs Act, 1962 for sale of Gas Cylinder along with vessels for ship breaking without being scrapped.
Source Taxscan
