Appellant Allowed to Sail Vessel to UAE for Contract Fulfillment

The Tribunal permitted the appellant to take the vessel out of Indian Territorial waters for 24 months to fulfill the Time Charter Contract with Middle East Marine LLC. The appellant was required to file an undertaking stating the purpose and return the vessel within 24 months from its release. The interest of revenue was safeguarded through the Bond, Bank Guarantee, and the pre-deposit made by the appellant, leading to the decision to allow the sailing of the vessel to UAE for the contract with Middle East Marine LLC.

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Issues:
Release of Vessel/Barge HALANI STAR, denial of permission to sail to UAE, justification of Assistant Commissioner's rejection, securing interest of revenue.

Release of Vessel/Barge HALANI STAR:
The appellant, M/s Bhambhani Shipping Ltd., and its Director applied for the release of the Vessel/Barge HALANI STAR, imported via Bill of Entry No. 4460906 dated 25.8.2011. The vessel was cleared provisionally upon payment of full duty based on a re-determined valuation as per Order-in-Original dated 24.2.2014. The appellant appealed against the order, and a stay order was issued by the Tribunal directing a penalty deposit of &8377; 35 lakhs. The appellant complied with this payment on 9.10.2014. The appellant claimed that the vessel was presently out of use, causing a loss of &8377; 50 lakhs per month. They had a Time Charter Contract with Middle East Marine LLC, requiring the vessel to be delivered by 15.1.2015 in Sharjah, UAE. The appellant's request to sail the vessel to UAE was rejected by the Assistant Commissioner of Customs, citing confiscation and unpaid fines and penalties.

Denial of Permission to Sail to UAE:
The appellant contended that the rejection of permission to sail the vessel to UAE was unjustified. They argued that the Tribunal had granted a stay on balance dues upon the deposit of &8377; 35 lakhs, which was done. Additionally, they had provided a Bank Guarantee of &8377; 65 lakhs and a Bond of &8377; 33 crores, ensuring the revenue's interest was fully secured. The appellant sought permission to sail the vessel to UAE under conditions deemed fit by the Tribunal.

Justification of Assistant Commissioner's Rejection:
The Revenue's representative supported the Assistant Commissioner's rejection of permission, citing the outstanding fines and penalties as justification for the denial. However, the Tribunal noted that the collection of the demanded amount had been stayed, and the revenue's interest was secured through the Bond, Bank Guarantee, and the pre-deposit made as per the Tribunal's order. Consequently, the Tribunal permitted the appellant to take the vessel out of Indian Territorial waters for 24 months to fulfill the Time Charter Contract with Middle East Marine LLC. The appellant was required to file an undertaking stating the purpose and return the vessel within 24 months from its release.

Securing Interest of Revenue:
The Tribunal acknowledged that the interest of revenue was safeguarded through the Bond, Bank Guarantee, and the pre-deposit made by the appellant. This assurance led to the decision to allow the appellant to sail the vessel to UAE for the contract with Middle East Marine LLC, subject to the condition of filing an undertaking and returning the vessel within 24 months. The miscellaneous applications were disposed of, and the order was to be given Dasti.

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