2013 (8) TMI 357 - AT - Customs

Stay application oil has been supplied to the various merchant vessels - shipping bill was cleared for export by the customs authorities indicating on the shipping bill that bonded bunker not to be landed . This would indicate that the warehoused gas oil. when they were imported duty free, has been removed from their warehouse for loading on to the vessel which is on a foreign run. - assessee had deposited the amount during the investigation as against the confirmed demand Held that - amount deposited by the assessee was enough deposit to hear and dispose the appeals - assessee was able to demonstrate that the goods which were cleared from their bonded warehouse had been loaded on to the foreign going vessel which was their prime responsibility - combined reading of Section 69 and 88 would indicate that once the goods were loaded or taken on board of any foreign going vessel - they had to be considered as exported out of India was a correct proposition - the invoices had been raised by the assessee which were paid by the purchaser of the gas oil and the bank remittance certificate clearly indicates an invoice number which was raised by the assessee Applications for the waiver of pre-deposit of the balance amounts involved were allowed and recovery stayed - decided in favour of assessee.

Summary

Issues:
Stay petitions for waiver of pre-deposit of customs duty, penalties, and interest amounts; Allegation of non-export of duty-free goods by the main appellant; Imposition of penalties on related parties; Manipulation of documents; Discrepancies in documentation and findings; Interpretation of Sections 69 and 88 of the Customs Act, 1962; Deposit made during investigation; Prima facie case in favor of the main appellant.

Analysis:
The judgment by the Appellate Tribunal CESTAT Ahmedabad addressed multiple issues arising from stay petitions filed for the waiver of pre-deposit of customs duty, penalties, and interest amounts related to an order in original. The primary issue revolved around the non-export of duty-free goods by the main appellant, M/s. Adani Enterprise Ltd. (AEL). The adjudicating authority confirmed duty demands against AEL for not supplying bunker oil to foreign vessels despite obtaining it under bond from suppliers. The authority's conclusion was based on statements from transporters and barge owners. Legal counsels for the appellants argued that the goods were indeed exported, supported by documentation such as shipping bills, landing certificates, and bank remittance certificates.

The tribunal examined the submissions and evidence presented by both sides. It noted that AEL had demonstrated the supply of gas oil to merchant vessels, citing specific instances like shipping bill No.F 2202. The landing certificate acknowledged the receipt of gas oil by the vessel's master, and invoices were honored by buyers, supported by bank remittance certificates. The tribunal considered the provisions of Sections 69 and 88 of the Customs Act, 1962, which state that goods loaded onto foreign vessels are considered exports. The tribunal found merit in AEL's case, given the evidence presented and the amount deposited during the investigation.

Regarding penalties imposed on related parties, the tribunal found that the documentation provided indicated the goods were loaded onto foreign vessels, negating the need for penalties. The Revenue's arguments of document manipulation and diversion of gas oil into the local market were countered by the appellants' evidence of export-related transactions. The tribunal highlighted discrepancies in the findings and noted the lack of conclusive evidence to refute the export claims.

Ultimately, the tribunal allowed the waiver of pre-deposit for the balance amounts involved, staying recovery until the appeals' disposal. It found a prima facie case in favor of AEL and extended the waiver to penalties for other appellants. The judgment emphasized the importance of evidence supporting export claims and the legal interpretation of export-related provisions in the Customs Act.