9911796707
TMI Blog1983 (7) TMI 192X X X X Extracts X X X X X X X X Extracts X X X X ..... tor of Central Excise (Appeals) under which the appellants' claim for refund of duty amounting to Rs. 66,119.74 under Notification No. 232/67, dated 9-10-1967 was rejected. Shri Setalwad for the appellant has argued that Notification No. 232/67, dated 9-10-1967 permits supply of the petroleum products mentioned therein as bunkers to an ocean-going vessel on the foreign run. The phraseology used in this notification is different from that used in Notification No. 11/49, dated 5-4-1949 which stipulates that rebate can be allowed of the duty paid on all excisable goods exported as ship' stores on board the vessel bound for any foreign port. These two phrases came up for interpretation before the Bombay High Court and the High Court had ruled t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otest. The reason for the Assistant Collector to demand duty was the fact that the Lajpatrai was an ocean-going vessel not on foreign run when it proceeded for lighterage work. The learned Advocate argued that this interpretation of the Assistant Collector was not correct. The Lajpatrai was an ocean-going vessel and it went out to sea at a distance of about 20 nautical miles for the purpose of lighterage work. Thus, it had gone to the place outside India as the mother ship Lokmanya Tilak from which the crude oil was offloaded into the Lajpatrai had been anchoring about 20 miles outside Bombay harbour. The Lajpatrai was engaged in lighterage work from 28-10-1978 to 30-10-1978. The Lajpatrai had returned to Bombay on 3-10-1978 and completed u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellants. 2. Shri Pattekar for the department has explained that the department permitted the supply of bunkers without payment of full duty as the Shipping Bill indicated that the Lajpatrai was bound for Khora-Al-Amaya of Iran. The appellants also made out the A.R. 4 form application accordingly. On receipt of the appellants' Letter dated 15-11-1978 the Assistant Collector of Central Excise became aware of the fact that the Lajpatrai was not a foreign going vessel in terms of Notification No. 232/67, dated 9-7-1967 as amended and therefore the demand for the duty on the furnace oil was issued and the amount was recovered. The Lajpatrai left for a foreign port only in January, 1979. The appellant had merely emphasised the fact that the Lajp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion No. 5/66, dated 15-1-1966 in case their main appeal was not acceptable to the Tribunal, Shri Pattekar argued that the request for this benefit was hit by the limitation and hence the same was not acceptable. Shri Pattekar, further contended that this plea was not raised by the appellants even in their first appeal to the Collector of Central Excise (Appeals). Hence, both their arguments were not tenable and he prayed that the appeal should be dismissed. 3. The learned Advocate Shri Setalwad has stated in reply that it was the appellants who inter alia in Letter dated 15-11-1978 had informed the excise authorities and therefore the bona fides of the appellants were quite clear. They were willing to pay duty applicable in the case and f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a place as the same is definable. Hence even in the understanding of a common man, it cannot be argued that the Lajpatrai was on a foreign run as envisaged in Notification No. 232/67, dated 9-10-1967. Further plea which has been taken by the appellant, is that the Lajpatrai went beyond the territorial waters of the country. This also does not help the appellant as in that case too, the vessel cannot be said to be on the foreign run. Besides, the definition of Indian Customs waters under Section 2(28) of the Customs Act includes waters extending to the limit as defined in the Continental Shelf Exclusively Economic Zone and other Maritime Zones Act, 1976. As per the appellants' own admission, the Lokmanya Tilak was within this limit. Hence t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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