2015 (8) TMI 1349 - AT - Customs

Grant of permission to take vessel outside India - undertaking given to bring the vessel back to India within six months from the date of export and also execution of bank guarantee - Held that - considering the reasons satisfactory and pre-deposit of ₹ 6.52 crores and bank guarantee 8.20 crores lying with the Revenue, we allow the applicant to take the vessel out side India for deployment for completion of work order for period of six months subject to condition that the applicant executes bank guarantee of ₹ 3 crores in favour of the Commissioner of Customs(Import), New Custom House, Mumbai - permission granted - application allowed - decided in favor of applicant.

Summary

Issues Involved:
Permission to take vessel outside India for deployment in Singapore, requirement of bank guarantee, consideration of revenue's interest, previous Tribunal order on the matter, pre-deposit and existing bank guarantee.

Analysis:
The judgment pertains to a Misc. Application seeking permission to take the vessel 'Seamec. II' outside India for deployment in Singapore. The applicant undertakes to bring back the vessel to India within six months from the date of export and upon completion of the work order, while also committing to maintain the bank guarantee. The Revenue, represented by Shri. V.K. Singh, has expressed no objection to granting permission subject to the condition that a bank guarantee is executed. The Tribunal, comprising Mr. P.S. Pruthi and Mr. Ramesh Nair, carefully considered the submissions from both sides.

In its decision, the Tribunal noted that a previous order had granted permission for a similar matter, subject to the execution of a bank guarantee of Rs. 3 crores in favor of the Commissioner of Customs(Import), New Custom House, Mumbai, to protect the Revenue's interests. Taking into account the satisfactory reasons provided, the pre-deposit of Rs. 6.52 crores, and the existing bank guarantee of Rs. 8.20 crores with the Revenue, the Tribunal allowed the applicant to take the vessel outside India for deployment for a period of six months. However, this permission is subject to the condition that the applicant executes a bank guarantee of Rs. 3 crores in favor of the Commissioner of Customs(Import), New Custom House, Mumbai. The Tribunal also specified that the applicant's existing bank guarantee of Rs. 8.20 crores, executed for provisional release, must be maintained. Consequently, the Misc. Application was allowed based on the aforementioned terms.

Overall, the judgment carefully balances the applicant's request to take the vessel outside India for deployment with the need to safeguard the Revenue's interests through the execution of a bank guarantee, considering the previous Tribunal order and the financial commitments already in place.