1983 (7) TMI 192 - AT - Customs

Tribunal denies duty refund claim for petroleum products supplied to vessel Lajpatrai

The Tribunal dismissed the appeal by M/s. Bharat Petroleum Corporation Ltd. regarding a duty refund claim for petroleum products supplied to the vessel ... Ship’s stores - Vessel on a foreign run Issues:Interpretation of Notification No. 232/67 concerning refund of duty for petroleum products supplied to ocean-going vessels on foreign run.Analysis:The appeal was filed against the rejection of a duty refund claim under Notification No. 232/67 by M/s. Bharat Petroleum Corporation Ltd. The main contention was whether the vessel in question, Lajpatrai, qualified as an ocean-going vessel on a foreign run when supplied with bunkers. The appellant argued that the vessel had gone beyond Indian territorial waters for lighterage work, making it eligible for the duty refund. The department, however, contended that the vessel did not meet the criteria under the notification as it did not proceed to a foreign port or place outside India during the relevant period. The Tribunal had to determine the applicability of the notification based on the vessel's activities and location.The appellant's argument relied on the interpretation of the term 'foreign going vessel' under the Customs Act and the relevance of this definition to the Central Excises and Salt Act. The Tribunal analyzed whether the vessel's actions aligned with the requirements of being on a foreign run as per Notification No. 232/67. It was established that merely going beyond Indian territorial waters was not sufficient to qualify as being on a foreign run. The Tribunal concluded that the vessel did not meet the criteria specified in the notification for claiming the duty refund.Additionally, the appellant sought the benefit of Notification No. 5/66 as an alternate plea. However, the department argued that this claim was time-barred and was not raised in the initial appeal to the Collector of Central Excise (Appeals). The Tribunal agreed with the department's stance, stating that the appellant should have filed this claim with the proper officer of the Central Excise to avoid being time-barred. As a result, the Tribunal dismissed the appeal and upheld the orders of the Assistant Collector of Central Excise (Appeals).In conclusion, the Tribunal's decision was based on the interpretation of the notification's requirements and the vessel's activities in relation to being on a foreign run. The appellant's arguments regarding the vessel's location and activities were deemed insufficient to qualify for the duty refund. The Tribunal also rejected the appellant's alternate plea due to being time-barred and not raised in the appropriate forum initially.