Per J.H. Joglekar : M.V. Jagat Priya was built by M/s. Hindustan Shipyard Ltd., in 1975 at Vishakapatanam, which was declared as a Custom Bonded Warehouse. Notification No. 118/59-Cus. dated 13.06.1959 exempted from customs duty vessels manufactured by M/s. Hindustan Shipyard Ltd., under Customs Bond. As per the records the said ship was cleared under the said notification. The present appellants are in possession of a letter dated 21.12.98 from M/s. Hindustan Shipyard Ltd., to this effect. The ship was initially purchased by M/s. Dempo Steamships Ltd., who plied it for some years. The ship was then auctioned and was purchased by the present appellant M/s. Mustan Taherbhai in February 1993. A bill of entry was filed by them claiming the vessel to be an Indian built vessel. The Customs assessed the vessel provisionally seeking payment of 5% custom duty. The appellants then went to the High Court of Gujarat. The High Court directed a bond to be filed with security deposit and exempted the appellants from the provisionally assessed duty of Rs. 75,89,375/-. Under the instructions of the High Court, an appeal was filed. The Collector (Appeals) Ahmedabad vide his order dated 29.04.1