Per Gowri Shankar : The Guru Ashish Ship Breakers, the importer, imported a ship MV Transent for breaking. The memorandum of agreement entered into by the importer with the seller of the ship on 14.9.1998 indicated the price of the ship to be US $617421. The ship came to the anchorage of Alang port on 24.5.1998. An addendum to the memorandum of agreement was signed by the buyer and seller on 26.5.1998, reducing the price for long ton of light displacement tonnage to US $ 135 and the total purchase price reduced to US $ 556678.90. The basis of the amendment was on account of following discrepancies:

1. All Generators of the vessel are not according to the specifications as shown in the M.O.A. and hence it has no releasable value at all.

2. There is water leakages in the cargo compartment at the bottom and as such the plate of the bottom is heavily damaged.

3. No. 5 derricks which is not in the working condition.

4. The vessel is of very poor condition and has been laid up for a period of long time and therefore the plate of the vessel is very rusted and poor quality.

2. In the bill of entry that it filed for clearance of the goods, the importer indicated the lower value for the basi