2011 (4) TMI 166

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....d by the Customs Authorities on provisional basis has been seized. 3. Pursuant to a contract entered into by and between the Oil and Natural Gas Corporation ('ONGC" for short) and the petitioner No.1, the petitioner No.1 were to install jackets and other items at the Mumbai High Seas for a petroleum project.The vessel in question required for executing the above work could be imported duty free, if Essentiality Certificate is issued by the Directorate General of Hydrocarbons ('DG, Hydrocarbons' for short). 4. In the present case, ONGC applied to the DG, Hydrocarbons seeking essentiality certificate in respect of the vessel in question, specifically stating therein that the petitioner No.1 is the sub-contractor of ONGC and the petition....

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....ydrocarbons who had  issued  the  essentiality certificate on 6¬12¬2010 had canceled the said certificate vide their letter dated 6--4-2011 and, therefore, the vessel in question is liable to be confiscated under Section 111(h), (m) and (o) of the  Customs Act, 1962. 8. Perusal of the letter of DG, Hydrocarbons dated 6¬-4-2011 shows that the said letter has been issued at the instance of the Customs Authorities, without hearing the petitioners and without considering the case put forth by the petitioners.The sole ground for cancelling the essentiality certificate is that   the ONGC could not confirm as to whether they have approved the petitioner   No.2 as the sub¬contractor. Mr.Jet....

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....   has   been  used  for   the  petroleum project  since  the  date  of   provisional   release.    Fourthly, as per Notification dated 1¬3-2002, the vessel in question could be cleared at 'nil'rate of duty subject to furnishing a certificate from DG, Hydrocarbon to the effect that the imported goods   are required for petroleum operations.   The  fact   that   the vessel   in  question  has   been  used  for   petroleum  operations   since  last four months is not in dispute.Fifthly, for the purposes of Customs Act, what is ....