TaxTMI 
TaxTMI 
2015 (9) TMI 400
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....the obligation under the contracts with the Oil and Natural Gas Commission. 3. The petitioners were required to file these petitions because the drill ship 'ABAN ICE' and drilling Rig 'ABANIV' were seized on 25th May,2015 by respondent no.3 to these Writ Petitions in exercise of power conferred under Section 110(1) of the Customs Act,1962. 4. The seizure was on the belief that these drill ship and drilling rig are liable to confiscation because though it were exempted from payment of duty under Notification No.12 of 2012 but the terms and conditions of this notification are not complied with. 5. There are lot of facets of this exemption and which are being placed before us by both sides. 6. We are not required to go into the same for the simple reason that the petitioners have throughout undertaken that the drill ship and drilling rig would be utilized only for fulfillment of contractual obligation with ONGC. The petitioners had filed an undertaking in the first petition of their Managing Director, Reji Abraham. They have stated before us that the provisional release of this drill ship was sought but the third respondent addressed a letter to ONGC with a copy ma....
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....ty Certificate with the stated addition has been issued by this Directorate, a copy of which is at 'Annexure B' to this affidavit at page 207 of the paper book. The details thereof and togetherwith other stipulations are also referred. 10. In the above circumstances, we are of the opinion that interest of justice would be served by disposing of these petitions as the facts and circumstances in both the petitions are same barring the dates of contracts and change in the name of the drill ship, nothing is indicated which would not enable us to dispose of these petitions by a common order. The petitions can thus be disposed of by accepting the undertakings of the petitioners given to this Court. We also direct that the petitioners shall execute a bond of 100% of the value of the ship/Rig in favour of the President of India in a required format within three weeks from today. Subject to compliance of this, the petitioners shall be permitted to deploy its drill ships/rigs as per the requirement of ONGC and in pursuance of written instructions which are received by the petitioners from time to time. However, the petitioners shall not be permitted to remove these drill ships/ rigs....
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....ion, the said essentiality certificate would not serve any other purpose whatsoever. 25. Construction of an eligibility clause contained in an exemption notification depends inter alia upon the purpose for which an exemption is sought to be granted. The exemption notification was issued by the Central Government in exercise of its power conferred upon it under Subsection (1) of Section 25 of the Customs Act. An exemption thereunder is granted, if the Central Government is satisfied that it is necessary so to do in public interest. Such exemption can be granted either absolutely or subject to such conditions, as may be specified therein. Such conditions are required to be fulfilled before or after clearance as may be specified. Such exemption would be in relation to the goods of specified description from the whole or any part of duty or customs leviable thereon. 26. Serial Nos. 182 and 184 of the notification refer to the goods falling under Chapter 84 and specified in List 11 required in connection with petroleum operations undertaken by a licensee. 27. ONGC is a licensee for exploration of petroleum products. ONGC has specifically been mentioned at Serial No. 182 of the ....
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....referred to in Subsection (1) of Section 25 as regard time when such certificate is to be produced would, thus, mean those which were within the control and power of the importer. If it is not within the power and control of the importer and depends upon the acts of other public functionaries, noncompliance of such condition, subject to just exception cannot be held to be a condition precedent which would disable it from obtaining the benefit therefrom for all times to come. 31. It is no doubt true that the fiscal liability has to be certain. There cannot, however, be any doubt that in a case of this nature ONGC being a government company for all intent and purport was also certain that it would get the requisite exemption, subject of course, to its fulfilling the condition of obtaining such essentiality certificate. 32. There is no universal law, as was suggested by Mr. Ganguly, that fiscal liability cannot be deferred. In a statute where there is a provision for a provisional assessment and/ or provisional clearance, subject to compliance of certain conditions, such conditions may be fulfilled at a later stage, namely, at the stage of final clearance or final assessment. ....