K.L. Rekhi, Member (J)

1. The dispute in this appeal is on the assessable value of a ship, purchased by the appellants in a public auction, for breaking up.

2. The ship, M.V. 'NIONIO', built in 1969 and having Light displacement tonnage (LDT) of 6,245 tons, came to India on 28.3.1985 with cargo of 23,995.782 M.T. of D.A.P. in bulk. The ship defaulted in payment of Admiralty charges It was arrested by the Sheriff of Bombay around 30.4.1985. The crew and Master of the ship signed off on 7.7.1985 and abandoned the ship. The ship remained laid up near Navlakhi Port in Gujarat. In course of time, the ship got partially submerged in water. In pursuance of the Hon'ble Bombay High Court's order dated 30.7.1985 and decree dated 20.9.1985 in Admiralty Suit No. 9 of 1985, the Sheriff of Bombay sold the ship by a public auction on 6.12.1985 on 'as is where is' basis. The Sheriff had fixed Rs. 50 lakhs as the minimum reserve price for the auction. The appellants offered the highest bid of Rs. 50 lakhs. Their offer was accepted. It was approved by the Hon'ble Bombay High Court on 27.12.1985. In the meantime, with permission of the Sheriff, the appellants put their own guards on the ship on 20