2014 (12) TMI 617

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....rude Carrier 'Desh Mahima' imported vide Bill of Entry No. 6124236 dated 28/02/2012 valued at US $ 7,03,70,000/- under the provisions of Section 111(f) of the Customs Act, 1962 with an option to redeem the same on payment of a fine of Rs. 1 crore under Section 125 of the Act. He has also imposed penalty of Rs. 5 lakhs under Section 112(a) and (b) of the Act on M/s. Shipping Corporation of India Ltd., the importer of the vessel. Aggrieved of the same, the appellant is before us. 3. The learned counsel for the appellant made the following submissions: 3.1. The appellant, M/s. Shipping Corporation of India Ltd. (SCI for short) placed a ship building contract of M/s. Hyundai Heavy Industries Co. Ltd. for supply of crude oil tanker wi....

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....of filing of the IGM in February, 2012, the appellant also sought for amendment of the IGM to include the vessel as 'goods' on 28/02/2012 and the same was allowed without imposing fine or penalty. 3.3 Thereafter, a show cause notice dated 03/05/2013 was issued to the appellant on the ground that the appellant had failed to comply with the import formalities under the Customs Act, as it had not declared the vessel in question in the IGM on its arrival for its clearance at the Indian Port of call, namely, Sikka, on 14/11/2010 and the appellant had not filed Bill of Entry for the vessel declaring the same as 'goods'. By not doing so, the vessel has become liable to confiscation under Section 111(f) and the appellant liable to ....

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....means any goods which are chargeable to duty and on which duty has not been paid. If the goods are exempt from payment of customs duty under a Notification, Revenue is not entitled to charge any duty on the goods. Where duty is not so chargeable, the goods are said to be not chargeable to duty and by virtue of the above definition they are not dutiable goods. Where the goods are not dutiable, the penalty in terms of clause 9ii) under Section 112(a) is not liable to be imposed. 3.6 The learned counsel further relies on the Circular No. 16/2012-Cus dated 13/06/2012 where in para 5 thereof, it was clarified that:               "all vessels including foreign going vessels for it....