Order Date: 10 August 2022

Facts-

• The Appellant, Larsen and Toubro Limited have supplied interceptor Boats and spare parts thereof to the Government of India for use by the Coast Guards for the coastal security.
• The department issued show cause notice, disputed the exemption of duty, as claimed by the appellant on the import of said B&D spares.
• The appellant submitted the reply that the appellant has fulfilled the conditions of notification by submitting the NDA certificate issued by the Government of India. They alternatively claimed the exemption under Serial No. 460 of the Customs Notification No. 12/2012-Cus. 
• However, the adjudicating authority confirmed the demand, imposed the penalties and redemption fine Vide Order-In-Original. 
• Being aggrieved by the said Order-In-Original the appellant filed the present appeal.

Issue-

• Whether the appellant’s goods imported and supplied as a B&D spares of Interceptor Boats to Cost Guard, Government of India is eligible for exemption Notification No. 12/2012-Cust (Sr. No. 460 or 469A)?

Order-

• The Tribunal observed that it is undisputed that the intercepted boats used by the Coast Guard Ministry of Defence Government of India is only for security of the costal border of the country and the boats are not used for any other purpose. It is also undisputed that the said interceptor boat are equipped with arms and ammunition, therefore, it is absolutely without any doubt that the interceptor boat is a warship.
• From the notification, it can be seen that the spare parts supplied for warship is clearly exempted under Notification 12/2012-Cust. Accordingly, The Tribunal held that the appellant are clearly eligible for exemption Notification No. 12/2012-Cus (Sr. No. 460). 
• T4he impugned order is set aside and the appeal is allowed.