2006 (4) TMI 423

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..... ship equipment made on 17-8-2000. 2. Under the impugned order, it has been held that duty free clearance was not available to the aforesaid supply of equipment. The reason given is that the appellant had not produced any "documentary evidence" in support of the claim that the vessel was, during the relevant time, in areas other than "designated areas". Another ground taken is that the value of the supply was mis-declared (around 25 thousand US $ as against the correct value of about 7.6 lakhs US $). 3. The contention of the appellant in the present appeal is that the findings are not correct and are contrary to evidence on record. It is being pointed out that the vessel was chartered to ONGC and ONGC reported to the Customs Aut .....

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..... d and that organisation had supplied directly to Customs a detailed certificate about its operations and areas of exploration work. It is not disputed that those areas are not designated areas. Thus, there is positive evidence about the vessel being in eligible area. The Commissioner should have accepted that positive evidence rather than presuming that the vessel did not move out of the territorial waters from 1993 onwards. Continuous supply of ship stores earlier (to which no objection is raised in the present order also) shows that vessel was in entitled areas. 7. Non-declaration of correct value cannot also be a reason for denying the benefit of ship stores, as value of stores is of no relevance, as pointed out by the learned Seni .....

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..... nth.       mh Maritime Hydraulics     Drilling facilities and Drilling Technology".                       A complete reading of the data on the invoice reveals the total value of the vessel as well as the instalments already paid. In the face of all the details given in the invoice, it is difficult to believe that the appellant had intention to mis-declare the value. Therefore, value stated also cannot be a ground, either for supporting the finding of the Commissioner that the goods were not eligible to be supplied as ship stores or for invoking the extended period on account of mis-declaration of value with intent to evade duty. 8. I .....

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