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2020 (4) TMI 248 - AT - CustomsImport of seismic research vessel viz., M.V.CREST RADIANT-5 with consumable stores such as marine gas oil, hydraulic, lubricating gas oil, grease, paints thinners - benefit of N/N. 21/2002-CUS dt.01.03.2002 - Denial of benefit on the ground that the marine gas oil imported by the appellant is having the characteristics of light diesel oil - HELD THAT - The issue came up before this Tribunal in the case of M/S C.G.G. MARINE VERSUS THE COMMISSIONER C C. E, VISAKHAPATNAM 2016 (6) TMI 709 - CESTAT HYDERABAD where it was held that what was imported was Marine Gas Oil and not Light Diesel Oil and hence the benefit of exemption under CN 21/2002, Sl.No.217, against the Essentiality Certificate issued by the Director General of Hydrocarbons, will be available to said Marine Gas Oil. As there is no dispute that the appellant has obtained the Essentiality Certificate issued by Director General of Hydrocarbons that the said goods have been used in connection with the petroleum operations, therefore, relying on the decision in the case of CGG Marine, it is held that the respondent is entitled for the benefit of exemption N/N. 21/2002. Benefit allowed - appeal dismissed - decided against Revenue.
Issues:
Appeal against the impugned order granting benefit of Notification No. 21/2002-CUS to the respondent and dropping the demand raised. Classification of imported goods under CTH 2710 1990 of Custom Tariff Act, 1975. Entitlement of respondent to benefit of exemption notification No. 21/2002-CUS based on Essentiality Certificate. Interpretation of previous Tribunal decisions regarding similar cases. Analysis: The appeal was filed by the Revenue against the impugned order where the Commissioner (Appeals) allowed the benefit of Notification No. 21/2002-CUS to the respondent and dropped the demand raised. The respondent imported goods for a seismic research vessel and claimed exemption based on an Essentiality Certificate. The goods were examined, and it was found that the marine gas oil imported by the respondent had characteristics of light diesel oil, leading to initiation of proceedings. However, the Commissioner (Appeals) classified the goods under CTH 2710 1990 and granted the benefit of exemption, prompting the Revenue's appeal. The Revenue argued that the goods were classified as light diesel oil by the chemical examiner, making them ineligible for the exemption. On the other hand, the respondent's consultant referred to a previous Tribunal decision where the benefit of the exemption was allowed in a similar case, asserting that the issue was settled. Upon hearing both sides and examining the records, the Tribunal delved into previous decisions related to similar cases. The Tribunal referred to a previous case where it was held that the imported goods were marine gas oil, not light diesel oil, and thus eligible for the exemption under Notification No. 21/2002-CUS. It was emphasized that the consumption of consumables during the journey was integral to petroleum operations, supporting the respondent's entitlement to the exemption. Since the respondent had obtained the Essentiality Certificate, confirming the goods' use in connection with petroleum operations, the Tribunal upheld the Commissioner (Appeals)' decision, dismissing the Revenue's appeal. The Tribunal found no infirmity in the impugned order and upheld the benefit of the exemption for the respondent based on the Essentiality Certificate.
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