9911796707
TMI Blog2005 (8) TMI 482X X X X Extracts X X X X X X X X Extracts X X X X ..... 05 of CC(Prev), Mumbai and waiver of pre-deposit required under the provisions of Section 129E of the Customs Act, 1962 were heard together and after hearing ld. Senior Counsels and other advocates for the Appellants and the Department, all these applications are being disposed of by this common order. 1.2. These proceedings were initiated by the Preventive Officers of Customs on receipt of specific information to the effect that a Rig named Glomar Main Pass-II was imported into India by M/s. Essar Constructions Ltd., (herein after referred to as Essar for short) in the year 1987 and was cleared from Customs by claiming full exemption of duty for goods imported in connection with off shore oil exploration or exploitation granted vide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Rig from the foreign port abroad after repairs directly to ONGC designated spots in the Bombay High Off Shore Sea Area, and used there for drilling purposes. On 23-12-1996, M/s. Essar entered into memorandum of agreement with M/s. Noble under which Rig was sold by M/s. Essar to Noble, however at the time of the said sale, as effected, the Rig was within EEZ waters of India but not at a designated location. However, it is claimed that this sale did not result in any movement of re-location of the Rig. It was admittedly handed over to M/s. Noble at IF Platform said to be in the EEZ Ocean area on 23-12-1996 and on the same date 23-12-1996 in order to permit Essar to continue with the ONGC contract, a bearboat chartered agreement dt. 23-1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it was inspected by the Customs Authorities at ONGC location HX Platform of ONGC before its departure to Sharjha. On 7-4-1999, letter by Noble was sent to Customs informing that the repairs were completed and the rig was being toed to Bombay High Offshore and that rig would be deployed at ONGC location under contract with Neptune and the Customs Authorities were requested to inspect the rig at the location. On 9-4-1999, B/E 11081/1 was filed for re-import of the rig after repairs claiming benefit of Notification 94/96-Cus. and the required duty determined was discharge. On completion of the contract between ONGC and Neptune, Noble filed a Shipping Bill for Export and on 27-2-2001 Neptune Dy. Commissioner of Cus. about the intent of Noble ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Department and the entire history has been repeatedly brought to the notice and attention of the proper officers from time to time. The applicability of the findings in Sedco s case supra to the facts of this case will have to be gone into and heard in details at the regular hearing. At this prima facie stage the finding would assist the Appellants plea of bar of limitation. (b) As regards the alleged sale of rig by Essar to Noble and that to constitute a breach of the provisions of EXIM policies, it is found that the same cannot be upheld since the EXIM Policy 1992-97 specifically relaxes the conditions or restrictions on sale, existing under the earlier Import Policy 1985-88 especially with regard to goods which were freely importa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e a admittedly the movement of the rig for the purpose of delivery took place was from one non-designated area in the EEZ to another non-designated area in the EEZ. Both these places being in international waters were clearly outside India and therefore the question the applicant filing a shipping bill could not arise as no export of the rig could be said to have taken place as a result of this movement. (e) Since duty demands and confiscation on prima facie consideration are not being upheld we find a good prima facie case to waive the penalties as imposed on the Appellants under Section 112/and/or Section 114 of Customs Act, 1962 as ordered by the ld. Commissioner. The consolidated penalties imposed as and/or without specifying and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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