2014 (12) TMI 528 - HC - Customs

Application for extension of time to bring the vessel SEAMEC-III to India - Vessel taken out of India for repairs - Held that - Normally no exception could be taken to the impugned order dated 28 October, 2013. However, in view of the peculiar facts viz. as opportunity to gainfully employ the vessel SEAMAC-III in Dubai was found post its repairs and otherwise the vessel would have been idle till the end of November when it would be gainfully employed in India extension of time was sought. The application for extension of time was also made to the Tribunal before 30 September, 2013. Taking all the above facts into account we are interfering with the order of the Tribunal and extending the time limit to bring the vessel SEAMEC-III to India. Learned Counsel under the instructions of Mr. S.L. Mohanty, Chief Legal Officer of the petitioner undertakes that the petitioner will bring the vessel back to India by 30 December, 2013 and shall also pay all the applicable duties and taxes for re-entry/re-import of the subject vessel and shall comply with all other legal requirements. Extension of the time for bringing the subject vessel SEAMAC-III back to India granted.

Summary

Issues:
Extension of time to bring a vessel back to India after repairs granted by CESTAT.

Analysis:
The petitioner was granted permission by CESTAT to take the vessel SEAMEC-III out of India for repairs upon furnishing a bank guarantee of Rs. 60 lacs and an undertaking to bring the vessel back by a specified date. However, the petitioner later requested an extension of time to bring the vessel back, which was initially dismissed by the Tribunal. The Tribunal's decision was based on the fact that the vessel was allowed to leave India for repairs solely based on the petitioner's undertaking.

Considering the unique circumstances where the vessel could be gainfully employed in Dubai post-repairs and would otherwise remain idle until a later date when it could be employed in India, the Court decided to intervene in the Tribunal's order. The petitioner had made the application for extension before the original deadline and provided valid reasons for the extension request. Therefore, the Court extended the time limit for bringing the vessel back to India, with the petitioner undertaking to comply with all legal requirements, pay applicable duties and taxes, and ensure the vessel's return by a new deadline of 30 December, 2013.

Based on the petitioner's undertaking, the Court granted the extension until 30 December, 2013, with a clear statement that no further extensions would be allowed. The writ petition was disposed of in accordance with the terms of the Court's decision, ensuring that the vessel would be brought back to India within the extended timeframe as specified in the undertaking provided by the petitioner.