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TMI Blog1971 (12) TMI 45X X X X Extracts X X X X X X X X Extracts X X X X ..... ia and Abroad. It is stated that the vessel S.S. "Jala Pankhi' arrived at the port of Calcutta from foreign via Nagapattam with general cargo and was cleared on 15th June, 1966 foreign port via Bombay with general cargo. On its voyage from Calcutta to foreign port via Bombay, the said vessel carried foreign cargo as well as coastal cargo for Customs Port at Bombay in India. It is alleged that after clearance of the vessel for foreign port and on way to a port outside India, touching, at the port of Bombay from Calcutta to the foreign ports, the vessel still "was a foreign-going vessel" under the provision of Section 2(21) of the Customs Act, 1962. The said vessel during its voyage from Calcutta to foreign port via Bombay carried coastal goo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t all foreign vessels permitted to carry coastal cargo on a particular voyage will have to submit a declaration in the form prescribed and if the major portion of the cargo is to be coastal, duty will be leviable on the consumable stores unless the procedure in the Annexure to the Circular was followed. The circular is in the following terms : - 'Circular' As the Steamer Agents are aware there has been considerable delay in the recovery of duty on stores of vessels transferred from foreign trade to coastal trade. The following procedure will henceforth apply :- All Indian vessel and all foreign vessels permitted to carry coastal cargo on a particular voyage will have to submit a declaration in the following form along with the entry o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er the coastal run the vessel reverts to foreign trade, the seal and the original inventory shall be checked by the Customs Officer on an application made by the Steamer Agents. The Customs Officer will indicate the quantity remaining unconsumed on the original inventory. A bill of entry should then be submitted within 15 days of the reversion to foreign trade for all the stores on which duty is payable". 2By another circular dated 23rd May, 1966 , the. Assistant Collector of Customs for Exports made provision for recovery of duty on stores of vessels transferred from foreign trade to coastal trade. The said circular is Annexure 'B' to the petition. These two circulars inter alia provide for sealing of all consumable goods in a foreign-go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Coastal ports of India was much more than the cargo which was being carried for Foreign ports and as a result the said vessel of the said voyage was deemed to be on a coastal voyage or run. It is stated that as the vessel in question was carrying cargo for foreign ports and the major portion of which was coastal cargo, the circular impugned applies and the petitioner must pay the Customs duty for the imported stores on board the said vessel and which could not be consumed without payment of any Customs duty. It is stated that the Imported Stores (Retention on Board) Regulations, 1963 is applicable to the imported stores. As the vessel in the said voyage was carrying predominantly coastal cargo she could not be considered to be a foreign g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gn country. 5.Mr. Sen on behalf of the respondent however contended that as it was found that the goods after being cleared from Calcutta port, coastal goods were to be cleared at Bombay, during the period of voyage from Calcutta to Bombay, the vessel loses her character of being a foreign-going vessel, but becomes a coastal vessel and as such the imported goods on board of the vessel is liable for the payment of Customs duty under the Imported Stores (Retention on Board) Regulations, 1963 unless the stores are sealed as provided in the impugned circular. 6. Before I deal with the point raised it is convenient for me to set out the relevant sections 2(7), 2 (21) and 87 of the Customs Act, 1962. The said sections are as follows:- "2 (7 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vessel is foreign going vessel. A foreign going vessel does not lose its character as such even if it carries passengers or goods to any intermediate port in India. It has been made clear in the definition of the 'foreign going vessel' which includes any vessel or aircraft proceeding to a place outside India or any vessel or aircraft proceeding to place outside India for any purpose whatsoever. In my opinion, therefore, carriage of any goods for intermediate port in India does not make any difference in the character of foreign going vessel if it is found that the vessel is cleared from an Indian port for a port outside India. Section 87 also makes it quite clear that a foreign going vessel can consume imported stores on board a vessel or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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