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Issues: Whether the appellant is entitled to the benefit of concessional rate under Notification No. 196/89-Cus. for imported spare parts for oil rigs, and whether the appellant can claim nil rate clearance under Section 86(2) read with Section 87 for utilization in a foreign going vessel.
Analysis: 1. The appeals raised the question of the appellant's entitlement to the concessional rate under Notification No. 196/89-Cus. for imported spare parts for oil rigs. The appellant failed to produce the Essentiality Certificate required by the notification, leading to the rejection of their plea for the concessional rate. Additionally, their claim for nil rate clearance under Section 86(2) read with Section 87 was also denied by the authorities, resulting in confirmed duties of Rs. 1,16,90,317/- and Rs. 11,58,181/- in two separate appeals. 2. The appellant's counsel argued that even if the claim under Section 87 of the Customs Act for nil rate of duty was considered, the total liability in one appeal would be Rs. 31,51,914/- and in the other appeal would be Rs. 4,01,757/-. The appellant offered to pre-deposit the amount of approximately Rs. 17,12,000/- within three months and contended that the Essentiality Certificate, though produced belatedly, should be considered for granting the benefit under the notification, citing a precedent to support their argument. 3. The Departmental Representative opposed the appellant's claim under Section 87, stating that the oil rigs did not meet the definition of a foreign-going vessel. Regarding the concessional rate claim, it was argued that since the appellants did not produce all Essentiality Certificates initially, they could not claim the benefit at a later stage. A report highlighted the difficulty in recovery if a stay was granted due to the appellant's lack of establishment at the relevant location. 4. Upon review, it was noted that the appellant had now produced the Essentiality Certificates required by the notification. Following a precedent, the matter was directed to go back to the original authority for re-consideration. The appellant agreed to pre-deposit Rs. 17,12,000/- within three months, and proof of deposit was required before the original authority for further consideration. 5. The appellant's claim regarding the foreign-going vessel status of the imported rigs was to be re-examined, considering a previous judgment and evidence to be produced by the appellants. The authorities were instructed to first assess the claim under Section 87 of the Act before considering the concessional rate under Notification No. 196/89-Cus. 6. The appeals were disposed of by remand, directing the appellants to pre-deposit the specified amount and provide proof of deposit for further consideration by the original authority. The case was to proceed in line with the principles of natural justice. 7. Both parties requested an expeditious decision due to the high revenue involvement. The original authority was directed to decide the matter promptly after the three-month period, following the submission of proof of pre-deposit by the appellants.
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