9911796707
|
Home
Issues:
1. Duty payment on imported tug and barges for Sethusamudram Project. 2. Confiscation and penalty imposed by Customs Department. 3. Applicability of Sections 111(f) and 111(j) of the Customs Act, 1962. Analysis: 1. The appellants imported a tug and two barges for the Sethusamudram Project, which was later shelved. They paid duty on the stores on board initially and later on the barges when sold. The tug was retained for potential project revival. The tug was taken to Vizag for repairs after obtaining permission for coastal run. The Department demanded duty payment on the tug, which was paid later. A show cause notice was issued, penalizing the appellants and confiscating the tug. The appellants contested, arguing that Sections 111(f) and 111(j) of the Customs Act were not applicable. 2. The Department contended that the appellants should have filed a Bill of Entry and paid duty on the tug as goods when obtained under a commercial invoice. They alleged deliberate removal of the tug from Chennai Port without duty payment, filing the Bill of Entry only when it reached Vizag Port. The Department justified confiscation and penalty based on these actions. 3. The Tribunal noted that the appellants paid duty on the sale of the barges and later on the tug, with prior permission for moving the tug to Vizag for repairs. Section 111(j) pertains to removal of goods without permission, but the appellants had obtained necessary clearance for the coastal run. Section 111(f) concerns manifesting goods, and the appellants did manifest the tug, albeit as a vessel on ballast. As the provisions cited by the Commissioner were deemed inapplicable, the Tribunal overturned the order, ruling in favor of the appellants.
|
