JUDGMENT : 1. The point involved in this appeal is directly covered by the decision of this Court in Union of India v. Jalyan Udyog - (1994) 1 SCC 318 . It is settled that the relevant date for determining value and rate of customs duty chargeable in such a case is the date of breaking up of the ship and not the date of its actual import. The view taken by the Tribunal that no duty was payable in the present case cannot, therefore, be sustained. 2. Accordingly, this appeal is allowed. The Tribunal's order is set aside and it is held that duty is payable by the respondent on the value and rate on the date of breaking or granting of permission whichever is earlier. The concerned authority could proceed to take further steps in accordance with law for recovery of the duty payable by the respondent on this basis. The respondent will pay costs quantified at Rs. 10,000/- to the appellant.