No Customs Duty Payable by Corporate Debtor on Sale of Floating Dry Dock to Foreign-Buyer During Liquidation: NCLT

The NCLT ruled that no customs duty is payable by a corporate debtor on the sale of a floating dry dock to a foreign buyer during the liquidation process. The case involved a corporate debtor liquidating its assets, with one of the assets being a floating dry dock. The tribunal found that since the transaction involved a foreign buyer, the sale was exempt from customs duty under the applicable laws. This ruling provides clarity on the treatment of foreign sales during liquidation and affirms that certain exemptions apply in such scenarios. The decision is important for companies undergoing liquidation, ensuring that they understand their tax obligations during asset disposal.