2016 (6) TMI 709

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....and claimed duty exemption for the items under S.No.217 of Customs Notification No. 21/2002, on the basis of Essentiality certificates from Directorate General of Hydrocarbons, certifying that the vessel and the consumables as listed, are required for petroleum operations and have been imported by appellants for execution of contract as sub-contractor of ONGC. The assessment was made provisional as the vessel was to be re-exported. Samples for test, interalia of Marine Gas Oil, were drawn for test. The Customs Laboratory vide its report dated 16-02-2005, reported that the sample described as Marine Gas Oil has the characteristics of Light Diesel Oil. The test Report is reproduced below: "The sample is in the form of brown coloured ....

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.... cannot be reached without voyage from port and the vessel has to be necessarily re-exported after completion of exploration activity, consumption of consumables during onward and return journey has to be treated as operations in connection with the petroleum operations. 4. The appellant finally submits that the subject dispute is no longer res integra and has been settled in favour of the appellant by the Tribunal in the case of Transocean Discoverer 534 LLC vs CCE-2015(315) ELT 69(Tri-Bang). We find that this contention is correct. The Tribunal, on identical facts, has interalia ordered/opined as under: "We find considerable force in the arguments advanced by the learned counsel. There was a specific query form the Custom Hous....

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.... went one step further and submitted that even going by the r.p.m. of the Drillship imported by them, it can be said that what is imported is MGO. In fact LDO can be used only when the r.p.m. of the engine is less than 750 r.p.m whereas in all the 3 drillship units imported by the appellant in the cases before us, the r.p.m. of the engines were more than 750 r.p.m and therefore LDO could not have been used for the engines. The discussion above would show that the appellant is eligible for the benefit of the notification as claimed by them and accordingly the impugned order is set aside and all the appeals are allowed with consequential relief, if any, to the appellants ". 5. The Department was represented by Shri.S.P.Rao, who re....