2003 (10) TMI 538

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....C project. The line pipes were required to be installed for water injection to augment oil production. All the line pipes except one segment were for installation at Bombay High platform and are used for connecting two designated platforms and in this process the middle portion of line pipes passes through non-designated area. 3. On 9-3-2000, the Commissioner of Customs (Export) permitted the appellants to file Bill of Entry for 10,387.50 metres of line pipes for designated areas for clearance on payment of duty and allowed the transhipment of the remaining line pipes to be laid in non-designated areas without payment of duty but against execution of bond, thereafter customs authorities demanded duty in respect of quantity of line p....

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....as is not liable to customs duty. 7. Regarding suppression, the contention of the appellants is that they asked for permission from the Commissioner of Customs for clearance of specified quantity of line pipes without payment of duty and this permission was granted subject to fulfilment of bond. Therefore, no suppression can be alleged against the appellants. 8. The contention of the Revenue is that these are customs made line pipes and they cannot be portioned for levy of customs duty as they are starting from the designated area and they are connecting one designated area to another designated area. 9. We find that the Central Government is competent to declare any area in the Continental Shelf and Exclusive Econom....