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TMI Blog2013 (11) TMI 1296X X X X Extracts X X X X X X X X Extracts X X X X ..... lthough the said vessel was used for salvage operations for the period of 22 days - Following decision in the case of Clough Engineering Ltd. [2005 (10) TMI 173 - CESTAT, MUMBAI] - Decided in favour of assessee. - C/85071 & 85122-Mum - - - Dated:- 30-7-2013 - Ashok Jindal And S K Gaule, JJ. For the Appellants : Shri Vipinkumar Jain, adv., Shri Krishna Kumar Ms. M.Bhardwaj, Adv. For the Respondent : Shri K M Mondal, Spl Counsel PER : Ashok Jindal The appellants are in appeals against the impugned order wherein duty demand of Rs.5,40,88,924/- has been confirmed alongwith interest and equivalent amount of penalty as been imposed under Sec. 114A of the Customs Act. Redemption fine of Rs.5 crores in lieu of confiscation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... used only for petroleum operations therefore, they are not entitled to the benefit of Notification 21/2002 at Sl. No. 216. Accordingly, the impugned order has been passed. 3. Aggrieved by the said order the appellants are before us. 4. Shri Vipin kumar Jain, the ld. counsel for the appellants appeared before us and submits that there is no dispute that the impugned vessel is imported duty free by claiming exemption in terms of Notification No. 21/2002-Cus dated 1.3.2002 (sr.No.216) wherein the condition of production of essentiality certificate issued by the Directorate General of Hydrocarbons for the intended purpose of petroleum operation in the Panna-Mukta Oil Fields on the west cost of India was complied with and it is also not d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich is not the case in hand. Therefore, the said decision cannot be relied upon. 5. On the other hand, Shri K.M.Mondal, Special Counsel for the Revenue submits that on careful reading of sr.no.216 of the notification and condition 31 attached to it, it may be seen that exemption is given to the goods specified in list 12 required in connection with petroleum operations undertaken under specific contract subject to fulfillment of condition no.31. Therefore, the exemption will not be available to the goods if the same are required for salvage operation or used for salvage operation and that too for monetary consideration as found by the Commissioner. He further submits that post importation condition or end-use condition is inbuilt in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... period of contract, the vessel was used for salvage purpose but it does not mean that the vessel was not used for intended purpose. The facts of the case in the case of Clough Engineering Ltd. supra are applicable to the facts of the case in hand wherein this tribunal granted the benefit of the notification despite the fact that the excess quantity of C.S.Pipes intended for petroleum operation was diverted in the local market. In fact, in that case this tribunal relied upon the decision in the case of State of Haryana vs. Dalmia Dadra Cement Ltd. -2004 (178) ELT 13 (S.C.) and observed that the Apex Court held that the expression for use occurring in Section 5(2)(a)(iv) of the Punjab General Sales Tax Act must mean intended for use and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en any undertaking to the department for exclusive use for petroleum operations. Therefore, the decision of King Rotors Air Charter P. Ltd. is not applicable to the facts of this case. 8. As the facts in the case of Clough Engineering Ltd. (supra) are applicable to the facts of this case, as the vessel imported by the appellants is for intended use in petroleum operations and the same was used for that purpose therefore, the appellants are entitled for exemption although the said vessel was used for salvage operations for the period of 22 days. With these observations, the impugned order is set aside and the appeals are allowed with consequential relief, if any. 9. Appeals are allowed. (Dictated in chamber) - - TaxTMI - TMITa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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