Conditional interim relief for vessel repair abroad may be granted in urgent cases with safeguards securing the Revenue.

In exceptional circumstances, CESTAT may grant conditional interim relief permitting a vessel to leave India for urgent dry-docking abroad where justice and balance of convenience so require. The Tribunal noted the owner's undertaking to return the vessel within the stipulated period and accepted Revenue-protective safeguards, including lien, hypothecation, bond, bank guarantee, insurance, and security over other vessels. It also observed that, even if the procedural rules do not expressly provide for such relief, inherent jurisdiction may be exercised to fashion an interim arrangement. The vessel was therefore allowed to depart subject to strict conditions designed to secure the Revenue pending the appeal.

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Issues: Whether interim permission could be granted for the vessel to leave India for urgent dry-docking abroad, subject to protective safeguards for the Revenue.

Analysis: The Tribunal noted the urgency of repair, the appellant's undertaking to bring back the vessel within the stipulated period, and the need to protect the Revenue by securing other vessels and requiring bank guarantee, bond, and insurance. It also considered that although the procedure rules did not expressly provide for such an order, the Tribunal could act in appropriate extraordinary circumstances in exercise of its inherent jurisdiction. The Tribunal further kept in view the need for circumspection in granting interim relief affecting public revenue, while recognising that interim protection may be justified where justice and balance of convenience so require.

Conclusion: Interim permission was granted to release the vessel for dry-docking abroad, subject to the stipulated security conditions, lien, hypothecation, bond, bank guarantee, and insurance.

Final Conclusion: The miscellaneous application was finally disposed of by allowing a temporary, conditional arrangement for the vessel's departure and return, with safeguards designed to protect the Revenue pending the appeal.

Ratio Decidendi: In exceptional circumstances, the Tribunal may grant conditional interim relief permitting a vessel to leave Indian waters for urgent repair while securing the Revenue through appropriate safeguards, even where the procedural rules do not expressly provide for such relief.

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