Custom
TRT-2025-
Cestat Ahmedabad
Date:-22-12-22
In:-
Issue Favourable to Tax Payer ?:-
Order date – 22 December 2022
Facts –
- The Appellants, M/s. KPG Enterprise and others imported a vessel for breaking purpose declaring the same as MT Capricorn - IMO 8900878. Old and Used Ship is covered by chapter 89080000 of the First Schedule to Customs Tariff Act, 1985 and the same is freely importable.
- A show cause notice dated 12.09.2018 was issued alleging that the Vessel is prohibited in terms of S.O. dated 20.06.2016; the vessel was confiscated under section 111 (d) of the Act and accordingly penalty was imposed upon the importer and other co-noticees.
Issue –
- Whether the imported vessel is prohibited in terms of S.O. dated 20.06.2016 or not?
Order –
- The Tribunal held that there is no mechanism prohibiting the entry of vessel in the S.O. dated 20.06.2016; hence the confiscation under 111 (d) cannot be pressed.
- It can be seen that the S.O. in terms of para 3(2) did not amend extending the adoption of the UNSC resolution post 31.03.2016 by further Orders and hence cannot be said to be applicable to the subject vessel which was imported after due clearances from UAE port authorities, brought to India without cargo for breaking/recycling purposes on 10/14.02.2018
- Also there is no sufficient material to substantiate the case of mis-statement much less any such acts wilfully done by the appellants. Hence the appeal is allowed.
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