Judgment

B. P. JEEVAN REDDY J. -Leave granted in SLP (C) No. 2074/ 93.

2. Civil Appeal No. 1104 of 1990, preferred by the Union of India, arises from the judgment of a Division Bench of the Bombay High Court reported in 1987 (32) E. L. T. 697 allowing the writ petition filed by M/s. Jalyan Udyog and M/s. West Asia Shipping Company Private Limited, the respondents in this appeal. Rest of the appeals arise from a common judgment of another Division Bench of the Bombay High Court dismissing the writ petitions filed by the ship-owners. The later Division Bench distinguished the decision in Jalyan Udyog and held in favour of the Union of India. The ship-owners have accordingly filed these civil appeals. The matters arise under the Customs Act, 1962.

3. In the year 1958, the Central Government issued a notification (exemption notification) being notification No. 262-Cus. dated October 11, 1958 in exercise of the power vested in it by Section 25 of the Act. The notification read thus :

"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.

Provi