2007 (6) TMI 343

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....gopal, Advocate, for the Respondent. [Order per : P. Karthikeyan, Member (T) (Oral)]. - This is an appeal filed by Revenue. M/s. Frontier Aban Drilling (India) Ltd., Chennai ('FADIL'), imported through Cuddalore a drill ship under Bill of Entry No. 8/2002-03, dated 29-6-2002. The drill ship of value Rs. 148.92 crores meant for Oil Well Drilling Operations was imported availing exemption unde....

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....he importer for having violated the policy provisions requiring re-export of the goods imported. The Commissioner found that the impugned goods could not be re-exported as they were irretrievably lost in the high seas after 133 days of use in connection with the petroleum operations. He found that in not re-exporting the subject goods there was no violation of any conditions of the exemption Notif....

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....He also noted the following instructions in the appraising manual: "Where the goods have been confiscated but allowed to be re-shipped on payment of fine are found missing at the time of re-shipment, the law ministry has observed that..... The liability for duty on missing goods will, however not arise in case of legal shortages" and found that the accessories lost in operation in the subject case....

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....in the exemption Notification. The impugned goods satisfied the requirement of the Notification for exemption benefit. The Commissioner's decision to treat the impugned goods as legal shortages is consistent with instructions contained in the appraising manual in relation to the goods confiscated and required to be re-exported. The Commissioner had also considered the case law AIR 1974 S.C. 1982 a....